Fisheries of the Exclusive Economic Zone Off Alaska; Amendment 96 to the Gulf of Alaska Fishery Management Plan; Management of Community Quota Entities, 66324-66337 [2014-26466]
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meaning that just over 1 percent of the
butterfish mortality cap has been
harvested each month. At this rate,
NMFS has projected that less than 15
percent of the current (3,884 mt)
butterfish mortality cap will be
harvested by December 31, 2014. If
implementation of this quota transfer is
delayed to solicit public comment, the
increase may not be effective prior to
the end of the 2014 fishing year and
butterfish that is currently allocated to
the longfin squid fishery may go
unutilized, thereby undermining the
intended economic benefits associated
with this action. Transferring the
allocation allows the directed butterfish
fishery to continue to target butterfish
while the fish are available. NMFS
further finds, pursuant to 5 U.S.C.
553(d)(3), good cause to waive the 30day delayed effectiveness period for the
reasons stated above.
Authority: 16 U.S.C. 1801 et seq.
Dated: November 3, 2014.
Emily H. Menashes,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2014–26413 Filed 11–3–14; 4:15 pm]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
specification of a commercial quota that
is apportioned among the coastal states
from Florida through Maine. The
process to set the annual commercial
quota and the percent allocated to each
state are described in § 648.162.
The final rule implementing
Amendment 1 to the Bluefish Fishery
Management Plan, which was published
in the Federal Register on July 26, 2000
(65 FR 45844), provided a mechanism
for bluefish quota to be transferred from
one state to another. Two or more states,
under mutual agreement and with the
concurrence of the Administrator,
Greater Atlantic Region, NMFS
(Regional Administrator), can transfer or
combine bluefish commercial quota
under § 648.162(e). The Regional
Administrator is required to consider
the criteria in § 648.162(e)(1) in the
evaluation of requests for quota transfers
or combinations.
Florida has agreed to transfer 250,000
lb (113,398 kg) of its 2014 commercial
quota to New York. This transfer was
prompted by the diligent efforts of state
officials in New York not to exceed the
commercial bluefish quota. The
Regional Administrator has determined
that the criteria set forth in
§ 648.162(e)(1) have been met. The
revised bluefish quotas for calendar year
2014 are: Florida, 500,309 lb (226,936
kg); and New York, 1,024,579 lb
(464,741 kg).
Classification
50 CFR Part 648
This action is taken under 50 CFR
part 648 and is exempt from review
under Executive Order 12866.
[Docket No. 140214138–4482–02]
RIN 0648–XD584
Authority: 16 U.S.C. 1801 et seq.
Fisheries of the Northeastern United
States; Bluefish Fishery; Quota
Transfer
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; quota transfer.
AGENCY:
NMFS announces that the
State of Florida is transferring a portion
of its 2014 commercial bluefish quota to
the State of New York. By this action,
NMFS adjusts the quotas and announces
the revised commercial quota for each
state involved.
DATES: Effective November 3, 2014
through December 31, 2014.
FOR FURTHER INFORMATION CONTACT:
Carly Bari, Fishery Management
Specialist, 978–281–9224.
SUPPLEMENTARY INFORMATION:
Regulations governing the bluefish
fishery are found at 50 CFR part 648.
The regulations require annual
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SUMMARY:
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Dated: November 3, 2014.
Emily H. Menashes,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2014–26412 Filed 11–3–14; 4:15 pm]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
[Docket No. 131115973–4885–02]
RIN 0648–BD74
Fisheries of the Exclusive Economic
Zone Off Alaska; Amendment 96 to the
Gulf of Alaska Fishery Management
Plan; Management of Community
Quota Entities
National Marine Fisheries
Service (NMFS), National Oceanic and
AGENCY:
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Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule.
NMFS publishes regulations
to implement Amendment 96 to the
Fishery Management Plan for
Groundfish of the Gulf of Alaska (FMP)
and an amendment to the Pacific halibut
commercial fishery regulations for
waters in and off Alaska. Amendment
96 to the FMP and the regulatory
amendment modify the Individual
Fishing Quota Program for the FixedGear Commercial Fisheries for Pacific
Halibut and Sablefish in Waters in and
off Alaska (IFQ Program). This action
will remove a regulation that prohibits
a Gulf of Alaska (GOA) Community
Quota Entity (CQE) from transferring
and holding small blocks of halibut and
sablefish quota share (QS). This action
will allow CQEs to acquire additional
QS and facilitate CQE community
resident participation in the IFQ
Program. This action promotes the goals
and objectives of the Magnuson-Stevens
Fishery Conservation and Management
Act, the Northern Pacific Halibut Act of
1982, the FMP, and other applicable
law.
DATES: Effective December 8, 2014.
ADDRESSES: Electronic copies of this
rule, the Regulatory Impact Review
(RIR)/Initial Regulatory Flexibility
Analysis (IRFA) (collectively, Analysis),
and the proposed rule prepared for
Amendment 96 and the regulatory
amendment may be obtained from
https://www.regulations.gov or from the
NMFS Alaska Region Web site at https://
alaskafisheries.noaa.gov. An electronic
copy of the 2010 Review of the CQE
Program under the Halibut and
Sablefish IFQ Program prepared by the
North Pacific Fishery Management
Council (Council) is available from the
Council Web site at www.npfmc.org/
community-quota-entity-program.
FOR FURTHER INFORMATION CONTACT:
Peggy Murphy, (907) 586–7228.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Regulatory Authority
NMFS issues regulations to
implement Amendment 96 to the FMP
and revise the halibut and sablefish
provisions of the CQE Program. The
Council recommended and NMFS
approved the FMP in 1978 under the
authority of the Magnuson-Stevens
Fishery Conservation and Management
Act (Magnuson-Stevens Act) (16 U.S.C.
1801 et seq.). Regulations implementing
the FMP and general regulations
governing sablefish appear at 50 CFR
part 679. Fishing for Pacific halibut
(Hippoglossus stenolepis) is managed by
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the International Pacific Halibut
Commission (IPHC) and the Council
under the Northern Pacific Halibut Act
of 1982 (Halibut Act). Section 773(c) of
the Halibut Act authorizes the Council
to develop regulations that are in
addition to, and not in conflict with,
approved IPHC regulations. Councilrecommended regulations may be
implemented by NMFS only after
approval by the Secretary of Commerce.
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Background
The Notice of Availability for
Amendment 96 was published in the
Federal Register on July 25, 2014 (79 FR
43377), with a 60-day comment period
that ended September 23, 2014. The
Secretary approved Amendment 96 on
October 21, 2014. The Council
submitted the proposed rule to NMFS,
and it was published in the Federal
Register on August 7, 2014 (79 FR
46237). The 30-day comment period on
the proposed rule ended on September
8, 2014. NMFS received a total of three
comment letters on Amendment 96 and
the proposed rule during the comment
periods. A summary of the comments
and the responses by NMFS are
provided under the ‘‘Comments and
Responses’’ section of this preamble.
A detailed review of the provisions of
Amendment 96, the proposed
regulations, and the rationale for these
regulations is provided in the preamble
to the proposed rule (79 FR 46237,
August 7, 2014). The proposed rule is
available from the NMFS Alaska Region
Web site (see ADDRESSES).
This final rule implements
Amendment 96 and amends CQE
Program regulations. Amendment 96
amends the FMP to remove a restriction
that prohibits a GOA CQE from
transferring and holding small blocks of
sablefish QS. This final rule amends the
CQE Program regulations by removing a
restriction that prohibits a GOA CQE
from transferring and holding small
blocks of halibut QS.
The IFQ and CQE Programs
The IFQ Program is a limited access
privilege program for the commercial
fixed-gear halibut and sablefish
(Anoplopoma fimbria) fisheries in the
exclusive economic zone off Alaska.
The IFQ Program limits access to the
halibut and sablefish fisheries to those
persons holding QS in specific
regulatory areas. Quota shares equate to
individual harvesting privileges that are
given effect on an annual basis through
the issuance of IFQ permits. An annual
IFQ permit authorizes the permit holder
to harvest a specified amount of IFQ
halibut or sablefish in a regulatory area.
An explanation of the IFQ Program can
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be found in the final rule implementing
the program (58 FR 59375, November 9,
1993).
The Council recommended the CQE
Program as an amendment to the IFQ
Program in 2002 (Amendment 66 to the
FMP), and NMFS implemented the
program in 2004 (69 FR 23681, April 30,
2004). The CQE Program provides
fishing opportunities to communities in
the GOA that depend on the halibut and
sablefish fisheries. Another CQE
Program, known as the Aleutian Islands
CQE Program, provides similar
opportunities to coastal communities in
the Aleutian Islands (79 FR 8870,
February 14, 2014). The Aleutian
Islands CQE Program is not affected by
this action and is not addressed further.
Where the terms ‘‘CQE’’ or ‘‘CQE
Program’’ are used in this preamble,
they are referring to the regulations and
management measures applicable to the
GOA CQE Program, and not to the
Aleutian Islands CQE Program.
The CQE Program allows 45 small,
remote, coastal communities in the GOA
to transfer and hold catcher vessel
halibut and sablefish QS in specific
regulatory areas (see Table 21 to Part
679). The CQE is the holder of the QS
and is issued the IFQ annually by
NMFS. The CQE leases the IFQ to
individual GOA community residents.
The program’s structure promotes
community access to QS to generate
participation in, and fishery revenues
from, the commercial halibut and
sablefish fisheries. Long-term retention
of QS by the CQE creates a permanent
asset for the community to use. Both
CQE- and non-CQE-held QS provide
community residents fishing access that
promotes the economic health of
communities. The final rule
implementing the CQE Program
describes the CQE Program objectives
and provisions (69 FR 23681, April 30,
2004).
Several IFQ Program provisions apply
to CQE Program participants. These
provisions include regulatory area and
vessel size categories; QS use caps; and
QS blocks. A detailed discussion of
these provisions and others that restrict
CQE transfer and holding of QS is
provided in the proposed rule preamble
for this action (79 FR 46237, August 7,
2014) and in the final rule
implementing the CQE Program (69 FR
23681, April 30, 2004). Except for the
small block restrictions that this final
rule will revise, these QS use provisions
will continue to apply to the CQE
program participants. For background
purposes, a summary of the QS use
provisions follows.
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IFQ Regulatory Area and Vessel Size
Categories
Fixed-gear halibut and sablefish QS is
specific to regulatory area and vessel
size category. In the GOA there are three
IPHC halibut regulatory areas—Areas 2C
(Southeast Alaska), 3A (Central Gulf of
Alaska), and 3B (Western Gulf of
Alaska)—and four sablefish regulatory
areas: Southeast (SE), West Yakutat
(WY), Central GOA (CG), and Western
GOA (WG). Each QS is assigned to a
vessel category based upon the size of
the vessel from which IFQ halibut and
sablefish may be harvested and/or
processed (see regulations at
§ 679.40(a)(5)). Halibut QS and its
associated IFQ are assigned to one of
four vessel categories in each regulatory
area: Freezer (catcher/processor)
category (category A); catcher vessel
greater than 60 ft. length overall (LOA)
(category B); catcher vessel 36 ft. to 60
ft. LOA (category C); and catcher vessel
35 ft. LOA or less (category D). Sablefish
QS and its associated IFQ are assigned
to one of three vessel categories in each
regulatory area: Freezer (catcher/
processor) category (category A); catcher
vessel greater than 60 ft. LOA (category
B); and catcher vessel 60 ft. LOA or less
(category C).
CQEs may obtain by transfer and hold
certain vessel categories of QS in
specified areas in order to facilitate local
support of community fishing
operations (see § 679.40 and Table 21 to
Part 679). CQEs may obtain by transfer
and hold sablefish QS in all IFQ
regulatory areas and vessel categories.
However, CQEs are restricted with
respect to the IFQ regulatory area(s) and
vessel category of halibut QS they may
transfer and hold. A detailed
explanation of the IFQ regulatory area(s)
and vessel category of halibut QS a CQE
can transfer and hold is provided in the
proposed rule for this action (79 FR
46237, August 7, 2014).
The CQE Program authorizes CQEs to
obtain by transfer and hold catcher
vessel QS: Category B, C, and D halibut
QS, with area-specific limitations for
category D halibut QS; and category B
and C sablefish QS. However, the vessel
size categories do not apply to IFQ
derived from QS held by a CQE, with an
exception for category D halibut QS in
Area 3A. The prohibition on CQEs’
transfer and holding of category D
halibut QS in Area 2C, the limitation on
the amount of category D halibut QS
that an Area 3A CQE may transfer and
hold, and the requirement that IFQ
derived from Area 3A category D QS
must (among other restrictions) be
fished on a category D vessel are
discussed in more detail in the
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preamble to the proposed rule for this
action (79 FR 46237, August 7, 2014).
These limitations were intended to
balance the Council’s objective for
providing CQEs with increased
opportunities to acquire halibut QS with
its objective to limit potential
competition for category D halibut QS
between non-CQE and CQE QS holders.
Vessel category D halibut QS is
generally the least expensive category of
halibut QS because non-CQE IFQ
derived from category D QS must be
used on the smallest category of catcher
vessel. It is often transferred and held by
smaller operations or by new entrants to
the IFQ fisheries.
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CQE Program QS Use Caps
Individual community use caps limit
the amount of halibut QS and sablefish
QS that each CQE may transfer and hold
on behalf of a community. The
individual community cap is limited to
the individual IFQ Program use caps.
Each GOA CQE is limited to transferring
and holding a maximum of 1 percent of
the Area 2C halibut QS (see regulations
at § 679.42(f)(2)(i)) and a maximum of
0.5 percent of the combined Area 2C,
3A, and 3B halibut QS (see regulations
at § 679.42(f)(2)(ii)). Each GOA CQE also
is limited to transferring and holding a
maximum of 1 percent of the Southeast
sablefish QS (see regulations at
§ 679.42(e)(5)) and a maximum of 1
percent of all combined sablefish areas
QS (see regulations at § 679.42(e)(4)(i)).
In addition to individual community
use caps, cumulative community use
caps limit the amount of halibut QS and
sablefish QS that all CQE eligible
communities within an IFQ regulatory
area can transfer and hold. The
cumulative community use caps limit
all CQEs in the GOA to a maximum of
21 percent of the total halibut QS pool
(see regulations at § 679.42(f)(5)) and a
maximum of 21 percent of the total
sablefish QS pool (see regulations at
§ 679.42(e)(6)) in each IFQ regulatory
area in the GOA.
QS Blocks
The IFQ Program initially issued QS
in blocks. A block is a consolidation of
QS units that cannot be subdivided
upon transfer (see regulations at
§ 679.41(e)(1)). One of the primary
purposes of QS blocks and the
subsequent amendments to the block
regulatory provisions was to conserve
small blocks of QS that could be
transferred at a relatively low cost by
crew members and new entrants to the
IFQ fisheries. The IFQ Program
incorporates a ‘‘sweep-up’’ provision to
allow very small blocks of QS to be
permanently consolidated, up to
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specified limits, so as to be practical to
fish (see regulations at §§ 679.41(e)(2)
and (e)(3)).
QS Block Use Cap
A block use cap restricts how many
blocks of QS an individual can transfer
and hold. The purpose of this cap is to
limit the consolidation of blocked QS
and to ensure that smaller aggregate
units would be available on the market,
thereby maintaining the diversity in
operation types that exist in more
remote coastal communities.
The IFQ Program also limits the
number of blocks a CQE may transfer
and hold. CQEs may transfer and hold
up to a maximum of 10 blocks of halibut
QS and 5 blocks of sablefish QS in each
GOA regulatory area (see regulations at
§ 679.42(g)(1)(ii)). These limits on CQE
block holdings and the limit on where
CQEs can hold QS restrict CQEs to 20
halibut QS blocks (10 blocks in each of
two regulatory areas) and 20 sablefish
QS blocks (5 blocks in each of four
regulatory areas).
Minimum Block Size
During development of the CQE
Program, the Council and NMFS
determined that if no limit on the
acquisition of blocked QS was
established, then gains in CQE holdings
could reflect losses of QS holdings
among residents of the same CQE
communities. Therefore, CQEs were
restricted from transferring or holding
blocked QS of less than a minimum size
to preserve fishing opportunities for
new entrants in certain regulatory areas.
CQE program regulations prohibit
CQEs from transferring and holding a
QS block that is less than the ‘‘sweep
up’’ limit, or the number of QS units
initially issued as blocks that could be
combined to form a single block (see
regulations at §§ 679.41(e)(4) and (e)(5)).
Quota share blocks that are less than or
equal to the ‘‘sweep up’’ limit are
known as ‘‘small blocks.’’ The amount
of QS units that comprise a small block
in each IFQ regulatory area in the GOA
is specified for the halibut fishery (see
regulations at § 679.41(e)(3)) and for the
sablefish fishery (see regulations at
§ 679.41(e)(2)). The CQE Program
regulations do not prohibit CQEs in
Area 3B from transferring or holding
small blocks of halibut QS. Fewer small
blocks exist in Area 3B and few new
entrants in Area 3B have sought these
small blocks of halibut QS (69 FR
23681, April 30, 2004).
Actions Implemented by This Final
Rule
This final rule amends the FMP and
halibut and sablefish CQE regulations to
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remove the restriction on CQEs’ ability
to purchase and use small blocks of
halibut and sablefish QS less than or
equal to the sweep-up limit currently
specified in regulations at
§§ 679.41(e)(5) and 679.41(e)(4),
respectively. The proposed rule
preamble provides a detailed
description of the rationale for removing
the regulation prohibiting a GOA CQE
from transferring and holding small
blocks of halibut QS (79 FR 46237,
August 7, 2014).
Under this final rule, all CQEs in the
GOA may receive by transfer any size
block of halibut and sablefish QS to
hold for use by eligible community
members. CQEs will be able to transfer
similar sized blocks of QS in the market
place as individual non-CQE QS
holders. The objectives of this final rule
are to provide CQE communities in the
GOA with increased opportunity to
transfer and hold QS and sustain
participation of CQE community
residents in the IFQ halibut and
sablefish fisheries.
This final rule also updates Table 21
to Part 679 to clarify the category of
halibut QS (A, B, C and D) and IFQ
regulatory area of the QS that a CQE can
transfer by area. This revision to Table
21 to Part 679 provides a clear and more
comprehensive summary of CQE
harvesting privileges.
Effects of This Final Rule
A description of the anticipated
effects of this action is included in the
preamble to the proposed rule and is
summarized here. This final rule
provides additional opportunities for
CQEs to transfer and hold QS, and
NMFS expects it will not adversely
affect the ability of non-CQE fishery
participants to transfer and hold small
blocks of QS. In evaluating this action,
the Council and NMFS considered the
current participation of CQE and nonCQE QS holders in the IFQ fishery, and
the potential impact on QS access and
markets. The Council and NMFS
determined that removing the small
block restriction from the CQE Program
should improve the ability of CQEs to
obtain the most affordable blocks of QS
without negatively impacting the ability
of non-CQE fishery participants to
obtain similar size blocks of QS. See the
proposed rule preamble and section
2.7.2 of the Analysis for additional
detail (see ADDRESSES).
Analysis of the percent of blocked and
unblocked QS in 2013 (the year of the
most recent available data) indicates
that the percentage of small block QS
relative to the total amount of QS in the
GOA IFQ regulatory areas is greater for
halibut (11.3 percent of the total Area
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2C and Area 3A halibut QS) than
sablefish (3.7 percent of the total SE.,
WY, CG, WG sablefish QS). Therefore,
while this action will impact sablefish
QS holders, it likely will have a greater
impact on halibut QS holders. As
described in the preamble to the
proposed rule, section 2.7.2.1 of the
Analysis considers the maximum
potential impacts of the action, which
assumes that all eligible communities
form CQEs and secure funding to
transfer all of the newly available small
blocks of QS, up to CQE Program limits
described above and in regulations at
§§ 679.41 and 679.42. The Analysis
indicates this outcome is unlikely given
reasonably foreseeable trends in QS
holdings by CQEs.
Analysis of the amount of small block
QS by regulatory area in 2013 indicates
that cumulative use caps on CQE QS
ownership will not constrain the
maximum potential transfer of QS by
CQEs. The more likely constraint on
CQE transfer and holding of QS will be
the limit on the number of blocks that
a CQE can transfer and hold in any one
regulatory area (10 halibut blocks and 5
sablefish blocks). Even at maximum
CQE participation, QS block limits and
the reservation of a limited amount of
Area 3A D share QS for purchase by
CQEs representing communities in Area
3A will prevent CQEs from collectively
acquiring all small block halibut QS
made available under this action. Thus,
the Council and NMFS determined that
small block halibut QS will continue to
be available to non-CQE participants in
the IFQ halibut fishery under this final
rule. See section 2.7.2.1 of the Analysis
for additional detail.
For sablefish, under allowable block
limits, CQEs will be able collectively to
transfer and hold all of the available
sablefish small block QS in each IFQ
regulatory area. Given the financial
barriers to CQE transfers of QS
described in the Analysis and in the
preamble to the proposed rule, the
Council and NMFS determined it is
unlikely that CQEs will transfer the
maximum amount of small block
sablefish QS made available by this
action. Thus, small block sablefish QS
will continue to be available to non-CQE
participants in the IFQ sablefish fishery
under this final rule. See sections
2.6.3.1 and 2.7.2.1 of the Analysis for
additional detail.
Although this action allows CQEs to
transfer and hold small blocks of A
share halibut and sablefish QS, the
Council and NMFS anticipate that CQE
purchases of A share QS will be limited.
Because IFQ derived from A share
halibut and sablefish QS may be caught
and processed at sea, A share QS is
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typically priced much higher than all
other QS categories. In addition, the
total amount of A share QS issued is
small relative to all other categories of
QS. Therefore, the potential impact of
allowing CQEs to purchase small blocks
of A share QS on new entrants, smallboat operations and CQE fishery
participants will be minimal under this
final rule. See sections 2.6.3.1 and
2.7.2.1 of the Analysis for additional
detail.
To date, CQEs have transferred and
held a limited amount of QS that likely
has not negatively impacted non-CQE
fishery participants’ ability to acquire
QS in the open market. Transferring and
holding small block QS will benefit
CQEs, their community members, and
future community members, who tend
to rely on these restricted blocks of
mainly small vessel category QS.
Allowing CQEs to transfer and hold
small block QS could also enhance a
CQE’s ability to keep QS in remote
communities and create some
operational efficiencies that provide a
net benefit to both the CQEs and their
community residents.
Changes From the Proposed Rule
There are no changes to the proposed
regulations (79 FR 46237, August 7,
2014).
Comments and Responses
During the public comment period on
the Notice of Availability for
Amendment 96 and the proposed rule to
revise CQE program regulations, NMFS
received three comment letters. Two
letters from members of the public did
not address the proposed action. These
letters expressed concerns about fishery
management policies that are outside
the scope of this action. The third
comment letter expressed concerns
about and did not support Amendment
96 and the proposed rule. The letter was
submitted by an organization
representing non-CQE IFQ Program
participants and contained six
comments. NMFS’ responses to the
public comments on Amendment 96
and the proposed rule are presented
below. No changes were made to this
final rule in response to the comment
letters received.
Comment 1: The commenter states
that Amendment 96 violates National
Standard 4 of the Magnuson-Stevens
Act, which specifies that conservation
and management measures shall not
discriminate between residents of
different states and that any allocation
of fishing privileges must be fair and
equitable. Amendment 96 benefits CQEs
and residents of CQE communities at
the expense of non-residents of Alaska
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66327
that participate in the IFQ fishery. This
is unfair, discriminatory, and contrary
to the requirements of National
Standard 4.
Response: NMFS disagrees that
Amendment 96 violates National
Standard 4 of the Magnuson-Stevens
Act. The Council and NMFS have
determined that Amendment 96 is
consistent with the requirements of the
Magnuson-Stevens Act. The CQE
Program was established to allow a
group of non-profit entities to hold QS
on behalf of residents of specific small,
geographically isolated, rural
communities located adjacent to the
coast of the GOA with a historical link
to the halibut and sablefish fisheries.
Communities that do not meet the
eligibility criteria may not participate in
the program and do not benefit from the
CQE Program. Communities that are
excluded from the CQE Program include
Alaska and non-Alaska communities.
Therefore, this action is not predicated
on an effort to discriminate between
residents of different states.
Amendment 96 removes a prohibition
on CQEs’ transferring and holding small
blocks of QS. Non-CQE participants in
the IFQ Program are not subject to this
prohibition, so this action is not
predicated upon any effort to unfairly
advantage CQEs.
As described in the proposed rule
preamble (79 FR 46237, August 7, 2014)
and in section 2.2 of the Analysis,
Amendment 96 and this final rule
promote the Council’s objective to
provide an opportunity for CQE
communities to acquire additional QS
and facilitate sustained participation by
CQE community residents in the IFQ
Program. Since the inception of the IFQ
Program, the number of resident halibut
and sablefish QS holders has declined
substantially in CQE communities. This
transfer of QS and the associated fishing
effort from CQE communities has
limited the ability of residents to locally
transfer and hold QS and reduced the
diversity of fisheries to which fishermen
in these communities have access (see
section 2.6.1.2 of the Analysis).
Fisheries participation by CQE
community residents may also be
limited because these individuals live in
small, remote coastal communities and
have a higher cost of participation than
individuals living in larger communities
with road access to supplies and
markets (see section 2.6.3 of the
Analysis). The Council and NMFS
intend for Amendment 96 and this final
rule to improve the ability of CQEs to
obtain the most affordable blocks of QS
and lease annual IFQ to community
residents without negatively impacting
the ability of non-CQE fishery
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participants to obtain similar size blocks
of QS. Also see the response to
comment 3.
Comment 2: The commenter states
that the Council’s recommendation of
Amendment 96 without considering
their proposal is unfair and
discriminatory. In February 2013, the
commenter submitted a proposal to the
Council that was similar to Amendment
96. The commenter proposed increasing
the small block QS transfer and holding
limits that apply to non-CQE
participants in the IFQ Program. The
Council denied the proposal and
referred it to the IFQ Committee for
consideration.
Response: The Council did not deny
the commenter’s proposal to increase
the amount of small block QS that may
be transferred and held by non-CQE
fishery participants, but referred the
proposal to its IFQ Committee for
review and discussion (see the minutes
of the February 2013 Council meeting at
https://www.npfmc.org/wp-content/
PDFdocuments/minutes/
213Council.pdf.). NMFS notes that
referral of the commenter’s proposal to
the IFQ Committee is consistent with
the established Council process for
addressing proposed revisions to the
IFQ Program. Under its long-established
process, the Council accepts proposals
from the public until a scheduled date
prior to convening the IFQ Committee.
The Council’s IFQ Committee plays a
significant role in reviewing proposals
and developing recommendations to the
Council for improvements to the IFQ
Program. The IFQ Committee is a
Council advisory body comprised of
participants in the IFQ Program. The
Council relies on the committee to
review and prioritize the large numbers
of proposals to revise the components of
the IFQ Program that it receives each
year. For additional detail on the
Council’s process for reviewing the IFQ
Program, see the NMFS Web site at
https://alaskafisheries.noaa.gov/ram/
ifq/ifqpaper.htm. NMFS has determined
that Amendment 96 and this final rule
are consistent with the MagnusonStevens Act and do not unfairly
disadvantage or discriminate against
non-CQE participants in the IFQ
program. See the response to Comment
1.
Comment 3: The commenter states
that CQEs have an unfair financial
advantage compared to non-CQE
participants in the IFQ Program. CQEs
are tax-exempt and can retain more
revenue from their fishing activities
than IFQ program participants who
must pay taxes. The commenter is also
aware of efforts to establish a low
interest loan program for CQEs to
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purchase halibut and sablefish QS. The
tax-exempt status of CQEs and the
potential loan program discriminate
against non-CQE fishermen and make it
difficult for them to purchase QS.
Response: NMFS disagrees that that
CQEs have an unfair financial advantage
compared to non-CQE participants in
the IFQ Program. Section 2.6.3.4 in the
Analysis and the proposed rule
preamble describe that CQEs have had
significant difficulties obtaining
financing to transfer and hold QS, and
that these difficulties have created a
barrier to participation in the CQE
Program. The Analysis describes that at
prevailing QS prices, it is difficult or
infeasible for CQEs to transfer and hold
QS because they do not generally have
assets to offer as collateral for a loan. In
addition, the administrative cost
necessary to establish and support the
CQE organization likely makes it more
difficult for a CQE to obtain financing to
transfer and hold QS than for a non-CQE
fishery participant who does not incur
these administrative costs. Because
CQEs hold QS and lease annual IFQ to
local residents, there is a layer of both
administrative cost and fiduciary
responsibility that has made it difficult
for CQEs to access funding sources to
transfer and hold QS. The
administrative overhead for a CQE
includes arranging and maintaining
financing for the QS, negotiating
transfers of QS, developing and
administering the criteria for
distributing IFQ among potential
lessees, and submitting annual reports
to NMFS detailing its activities. As
described in the Analysis, the prevailing
price of QS has been sufficiently high
that CQEs have not been able to afford
the administrative costs, while leasing
the shares to community residents at a
reasonable rate, and still have funds
remaining for debt repayment. This
information provides strong evidence
that CQEs do not have a financial
advantage over non-CQE fishery
participants.
The Council and NMFS intend for
this final rule to improve the ability of
CQEs to transfer and hold QS by
removing the prohibition on CQEs’
holding small block QS. Removing this
prohibition will provide CQEs with the
opportunity to transfer and hold QS that
is available at a lower cost, and
therefore will be more affordable for
CQEs.
As described in section 2.7.2 of the
Analysis and in the preamble to the
proposed rule, NMFS anticipates that
Amendment 96 and this final rule will
not adversely affect the ability of nonCQE participants to transfer and hold
small blocks of QS. NMFS expects that
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this final rule may allow some
redistribution of QS because it is
intended to have distributional effects
among QS holders by promoting the
transfer of QS from existing QS holders
to the CQE. However, based upon the
Analysis, the Council and NMFS
anticipate this final rule may provide
additional opportunity for CQEs to
transfer and hold more affordable QS
without negatively impacting non-CQE
participants in the IFQ Program (see
section 2.7.3 of the Analysis for
additional detail).
Section 2.7.2.4 of the Analysis and the
proposed rule preamble note that
removing the prohibition on CQEs
purchasing small blocks of halibut and
sablefish QS could create the potential
for greater competition in the market for
purchasing QS, which could result in
higher QS prices. However, the Analysis
notes that such increases in QS prices
would occur only if CQEs can afford to
pay as much or more for small block QS
than non-CQE fishery participants. As
described above and in section 2.6.3.4 of
the Analysis, the difficulties that CQEs
have faced in obtaining financing to
transfer and hold QS are unlikely to
change under Amendment 96 and this
final rule. Therefore, the Council and
NMFS determined it is unlikely that
CQEs will accrue the financial assets to
transfer a quantity of QS that would
have a significant impact on QS price or
on the ability of non-CQE fishery
participants’ to transfer and hold QS.
Several other factors are also likely to
limit the impact of this final rule on
non-CQE fishery participants. The most
important factors are (1) a CQE must
receive QS by transfer on the open
market from a willing seller, (2) the
amount of small block QS made
available to CQEs through this final rule
is limited to 11.3 percent of the
combined halibut QS pool for Areas 2C
and 3A, and 3.7 percent of the
combined sablefish QS pool for the SE.,
WY, CG, and WG areas (see section
2.7.2.1 in the Analysis), and (3) each
CQE will be subject to existing
restrictions for CQEs on transferring and
holding QS that are specified in
regulation. Section 2.7.2.1 in the
Analysis and the proposed rule
preamble note that these restrictions
include regulatory area designations
applicable to all QS holders, individual
and cumulative QS use caps specific to
CQEs, a prohibition on CQEs
transferring and holding category D
halibut QS in Area 2C, a limitation on
the amount of category D halibut QS
that a CQE in Area 3A may transfer and
hold, and the requirement that IFQ
derived from Area 3A category D QS
must (among other restrictions) be
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fished on a category D vessel. Therefore,
NMFS does not anticipate that this final
rule will negatively impact the ability of
non-CQE fishery participants to transfer
and hold small blocks of QS. NMFS has
determined that Amendment 96 and
this final rule are consistent with the
Magnuson-Stevens Act and do not
unfairly disadvantage or discriminate
against non-CQE participants in the IFQ
program. See the response to Comment
1.
NMFS notes that development of a
loan program for CQEs to transfer and
hold QS is outside NMFS’ authority and
the scope of this action. The final rule
implementing the CQE Program
describes that the Council and NMFS
have determined that a non-profit entity
is the appropriate type of entity to
transfer and hold halibut and sablefish
QS on behalf of CQE communities (69
FR 23681, April 30, 2004). The decision
to grant non-profit organizations taxexempt status is based on State of
Alaska law and is outside NMFS’s
authority and the scope of this action.
Comment 4: The commenter notes
that the proposed rule states that the
CQE program is essential to the survival
of small Alaska communities because
members of these communities either
sold their initially issued QS or moved
from their communities. The proposed
rule also suggests that CQEs will offer
‘‘favorable lease terms as compared to
the open market.’’ The commenter
disagrees with these assertions. The
CQE program will not address the issue
of initial recipients selling their QS and
moving from communities. The price of
QS will rise and fall with the demands
of the open market and a CQE cannot
change this by offering favorable lease
rates to community residents.
Response: The final rule
implementing the GOA CQE Program
(69 FR 23681, April 30, 2004) and the
proposed rule to implement
Amendment 96 (79 FR 46237, August 7,
2014) describe that the Council and
NMFS have determined that the CQE
Program promotes community access to
QS to generate participation in, and
fishery revenues from, the commercial
halibut and sablefish fisheries. The
Council and NMFS recognize that
significant barriers exist to CQEs
obtaining financing to transfer and hold
QS and these barriers have limited
participation in the program.
Amendment 96 and this final rule are
intended to provide an opportunity for
increased participation in the CQE
program. The amendment allows CQEs
to transfer and hold small block QS,
which is generally available at a lower
price than larger QS blocks or
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unblocked QS (see section 2.6.2 in the
Analysis for additional detail).
Residents of CQE communities who
lease QS are likely to pay a lower rate
to lease IFQ from a CQE than they
would pay to lease IFQ from a non-CQE
QS holder. Section 2.7.1.4 in the
Analysis describes that the two
currently active CQEs lease IFQ to
community residents at a 45-percent
rate, meaning that the CQE recovers 45
percent of the gross fishing revenue. The
CQEs use these funds to repay the debt
from purchasing QS and cover
administrative costs, and may use some
of the funds to transfer and hold
additional QS in the future. NMFS
cannot compare this 45-percent rate to
the terms offered in private IFQ leases,
since private parties do not submit lease
data to NMFS, but it is likely that CQEs
are offering favorable lease terms in
relation to the market average. Based on
this information, the Council and NMFS
have determined that Amendment 96
and this final rule may enhance the
ability of CQEs to transfer and hold QS
for the long-term benefit of community
residents. Also see the response to
Comment 3.
Comment 5: The commenter states
that individuals who are not eligible to
lease IFQ from a CQE would be
disadvantaged compared to fishermen
harvesting CQE-held IFQ because those
fishermen are subject to less restrictive
regulations. For example, CQE fishery
participants are exempt from the
requirement to harvest IFQ on a vessel
that corresponds to the vessel size
category of the IFQ. In addition, CQEs
must hire skippers to harvest annual
IFQ. Non-CQE fishery participants are
no longer allowed to hire a skipper
without additional restrictions.
Response: The final rule
implementing the GOA CQE Program
(69 FR 23681, April 30, 2004) and the
proposed rule to implement
Amendment 96 (79 FR 46237, August 7,
2014) describe that the Council and
NMFS have identified specific
objectives for the CQE Program and
rationale for specific provisions that
result in different requirements for CQE
and non-CQE participants in the IFQ
fisheries (see sections 2.6.1.2 and 2.6.2
in the Analysis for additional detail).
These fishery provisions and
requirements are consistent with the
goals for the IFQ Program (58 FR 59375,
November 9, 1993). NMFS has
determined that this final rule meets the
Council’s objective to provide CQE
communities in the GOA with long-term
opportunities to access the halibut and
sablefish fisheries, is consistent with the
goals for the IFQ Program, and is not
likely to have significant effects on
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66329
individual participants in the IFQ
fisheries or residents of non-CQE
communities.
In recommending Amendment 96, the
Council and NMFS balanced the
objective of promoting community
access to QS and IFQ with the intent to
maintain entry-level opportunities for
fishermen residing in other fisherydependent communities, consistent
with the goals of the IFQ Program. This
final rule allows IFQ derived from
category B and C catcher vessel share
QS held by a CQE to be fished from a
vessel of any size regardless of the QS
vessel category from which the IFQ was
derived (see § 679.42(a)(2)(iii)). As
described in section 2.6.1.2 of the
Analysis and the final rule
implementing the CQE Program,
allowing IFQ derived from category B
and C catcher vessel share QS held by
a CQE to be fished from a vessel of any
size facilitates the use of IFQ on the
wide range of vessel types that fish in
GOA communities.
NMFS notes that the CQE Program
does not provide this flexibility for
CQEs holding category D catcher vessel
QS in Area 3A. Regulations at
§ 679.42(a)(2)(iii) specify that IFQ
derived from category D catcher vessel
QS held by a CQE must be fished on a
category D vessel (35 ft. LOA or less),
consistent with requirements for nonCQE QS holders. The Council and
NMFS determined that CQEs should be
subject to the same rules as other QS
holders participating in the IFQ Program
with regard to the use of category D
catcher vessel QS in Area 3A. The
comment refers to IFQ Program
regulations that require, with some
exceptions, a catcher vessel QS holder
to be onboard the vessel during harvest
and offloading of IFQ derived from their
QS. As described in the final rule to
implement the IFQ Program, this
requirement at § 679.42(c) is intended to
promote stewardship by providing
active fishermen with a vested interest
in the long-term productivity of the
halibut and sablefish resources. CQE
community fishermen do not hold QS
but instead are allowed to lease IFQ
derived from CQE-held QS. This final
rule maintains regulations at § 679.42(c)
and § 679.42(i)(5) that require that
during harvest and offloading, the lessee
must be onboard the vessel fishing the
IFQ leased from the CQE, consistent
with the owner onboard objective for
the IFQ Program. The regulations at
§ 679.42(i)(5) specify that an individual
who receives IFQ derived from QS held
by a CQE may not designate a hired
master to fish the community IFQ; the
individual must be on board the vessel
when the IFQ is being fished.
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Individuals who hold leases of IFQ from
a CQE are considered IFQ permit
holders and are subject to the
regulations that govern other IFQ permit
holders.
Comment 6: A CQE is allowed to lease
its IFQ and is able to benefit from QS
through multiple generations. A nonCQE QS holder’s beneficiaries do not
receive the long-term benefit of the QS
after the death of the non-CQE QS
holder. The non-CQE QS holder’s
beneficiary may only lease the resulting
IFQ for three years and after that time,
the beneficiary must meet the eligibility
requirements to hold QS and must be
onboard the vessel when the IFQ is
harvested, or they must transfer the QS.
The commenter states that this is unfair
to non-CQE fishery participants, will
reduce the amount of QS on the market,
and lead to higher QS purchase prices.
Response: The commenter is correct
that a CQE could lease IFQ to multiple
generations of CQE community
fishermen. NMFS notes this is
consistent with the CQE Program
objective to provide CQE community
residents with long-term opportunities
to access the halibut and sablefish
fisheries, as described in the proposed
rule, in section 2.6.1.2 of the Analysis,
and in the final rule implementing the
CQE Program (69 FR 23681, April 30,
2004).
The commenter contrasts the CQE
Program objective to promote long-term
QS holdings by the community entity
with regulations at § 679.41(k) that
impose a limit on the amount of time a
non-CQE QS holder’s beneficiary may
hold the QS after the non-CQE QS
holder’s death, if the beneficiary is not
otherwise eligible to hold QS under IFQ
Program requirements at § 679.41(d).
As described in the response to
Comment 4, the Council and NMFS
have determined that the CQE Program
structure promotes community access to
QS to generate participation in, and
fishery revenues from, the commercial
halibut and sablefish fisheries. To meet
the objectives for the CQE Program, the
Council and NMFS have developed
different requirements for CQE and nonCQE participants in the IFQ fisheries
(see the response to Comment 5). NMFS
has determined that Amendment 96 and
this final rule meet the Council’s
objective to provide the CQE
communities with long-term
opportunities to access the halibut and
sablefish IFQ fisheries, is consistent
with the goals for the IFQ Program, and
is not likely to have significant effects
on individual participants in the IFQ
fisheries or residents of non-CQE
communities.
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Section 2.6.3.1 of the Analysis and the
proposed rule preamble for this action
(79 FR 46237, August 7, 2014) indicate
that this action is not expected to result
in increased demand for QS or a higher
price for QS. These impacts have not
been observed in the past and are not
likely to occur in the future, given the
present constraints on CQE access to
investment capital and the range of
other factors that also influence QS
prices (see the response to Comment 3).
Therefore, NMFS does not consider
existing and potential future non-CQE
QS holders to be significantly impacted
by this action.
Classification
The Administrator, Alaska Region,
NMFS determined that Amendment 96
to the FMP is necessary for the
conservation and management of the
sablefish IFQ and CQE fisheries and that
it is consistent with the MagnusonStevens Act and other applicable laws.
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 as
long as those regulations do not conflict
with IPHC regulations. The final action
is consistent with the Council’s
authority to allocate halibut catches
among fishery participants in the waters
off Alaska.
This rule has been determined to be
not significant for purposes of Executive
Order 12866.
Small Entity Compliance Guide
Section 212 of the Small Business
Regulatory Enforcement Fairness Act of
1996 states that, for each rule or group
of related rules for which an agency is
required to prepare a final regulatory
flexibility analysis (FRFA), the agency
shall publish one or more guides to
assist small entities in complying with
the rule, and shall designate such
publications as ‘‘small entity
compliance guides.’’ The agency shall
also explain the actions a small entity is
required to take to comply with a rule
or group of rules. The preamble to the
proposed rule and this final rule serve
as the small entity compliance guide.
This action does not require any
additional compliance from small
entities that is not described in the
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proposed and final rules. Copies of
these rules are available from the NMFS
Alaska Region Web site at https://
alaskafisheries.noaa.gov.
Final Regulatory Flexibility Analysis
A final regulatory flexibility analysis
(FRFA) is required by the Regulatory
Flexibility Act (RFA). This FRFA
incorporates the Initial Regulatory
Flexibility Analysis (IRFA) prepared for
the proposed rule and addresses the
applicable requirements of section 604
of the RFA. The IRFA was summarized
in the ‘‘Classification’’ section of the
preamble to the proposed rule.
Analytical requirements for the FRFA
are described in the RFA, sections
604(a)(1) through (5), and summarized
below.
The FRFA must contain:
1. A succinct statement of the need
for, and objectives of, the rule;
2. A summary of the significant issues
raised by the public comments in
response to the initial regulatory
flexibility analysis, a summary of the
assessment of the agency of such issues,
and a statement of any changes made in
the proposed rule as a result of such
comments;
3. A description and an estimate of
the number of small entities to which
the rule will apply, or an explanation of
why no such estimate is available;
4. A description of the projected
reporting, recordkeeping, and other
compliance requirements of the rule,
including an estimate of the classes of
small entities which will be subject to
the requirement and the type of
professional skills necessary for
preparation of the report or record; and
5. A description of the steps the
agency has taken to minimize the
significant economic impact on small
entities consistent with the stated
objectives of applicable statutes,
including a statement of the factual,
policy, and legal reasons for selecting
the alternative adopted in the final rule
and why each one of the other
significant alternatives to the rule
considered by the agency which affect
the impact on small entities was
rejected.
The ‘‘universe’’ of entities to be
considered in a FRFA generally
includes only those small entities that
can reasonably be expected to be
directly regulated by the final rule. If the
effects of the rule fall primarily on a
distinct segment of the industry, or
portion thereof (e.g., user group, gear
type, geographic area), that segment is
considered the universe for purposes of
this analysis.
In preparing an FRFA, an agency may
provide either a quantifiable or
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numerical description of the effects of a
rule (and alternatives to the rule), or
more general descriptive statements, if
quantification is not practicable or
reliable.
Need for and Objectives of This Final
Rule
The objectives of this final rule are to
provide CQE communities in the GOA
with increased opportunity to transfer
and hold QS and sustain participation
of CQE community residents in the IFQ
halibut and sablefish fisheries. An
explanation of the need for this final
rule is described in preamble of this rule
and is not repeated here. This
information also was described in detail
in the preamble to the proposed rule (79
FR 46237, August 7, 2014).
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Comments on the IRFA
NMFS published the proposed rule on
August 7, 2014 (79 FR 46237), with
comments invited through September 8,
2014. NMFS received three comment
letters from the public on Amendment
96 and the proposed rule. None of these
comments specifically addressed the
IRFA, but Comments 3, 4, 5 and 6
expressed concerns about the potential
impacts of allowing CQEs in the GOA to
transfer and hold small blocks of QS on
non-CQE participants in the halibut and
sablefish IFQ fisheries. NMFS’
responses to these comments explain
that the Council and NMFS considered
the potential impacts of Amendment 96
and the final rule on participants in the
halibut and sablefish fisheries and
determined that it is unlikely to have
negative impacts on non-CQE
participants in the halibut and sablefish
fisheries. Several provisions of the CQE
Program, including QS blocks and QS
use limits, restrict the amount of total
QS that a CQE may obtain by transfer
and hold. NMFS has determined that
this final rule balances the objectives of
the action with consideration of the
impacts on non-CQE participants in the
halibut and sablefish fisheries.
No comments on the proposed rule
were filed with NMFS by the Chief
Counsel for Advocacy of the Small
Business Administration.
Number and Description of Directly
Regulated Small Entities
The determination of the number and
description of small entities regulated
by this action is based on small business
standards established by the Small
Business Administration (SBA). On June
12, 2014, the SBA issued a final rule
revising the small business size
standards for several industries effective
July 14, 2014 (79 FR 33647, June 12,
2014). The rule increased the size
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standard for Finfish Fishing from $19.0
to 20.5 million. The new size standards
were used to prepare the FRFA for this
action.
At present, NMFS does not have
sufficient ownership and affiliation
information to determine precisely the
number of entities in the IFQ Program
that are ‘‘small’’ based on SBA
guidelines, nor the number that will be
adversely impacted by the present
action. This FRFA therefore assumes
that all directly regulated operations are
small.
The action applies to 45 CQEs that are
considered small entities under the RFA
(Section 601(3)). The CQEs qualify as
small not-for-profit organizations that
are not dominant in their field. CQEs
represent small communities that
directly benefit from this action. Each of
the communities qualifies as a small
entity under the RFA since they are
governments of towns or villages with
populations less than 50,000 people.
The CQE obtains by transfer and holds
QS and makes the resulting IFQ
available by lease to eligible harvesters
that are community residents. Those
harvesters are required to make a series
of reports and declarations to NMFS in
order to be found eligible to participate.
Therefore, those harvesters are directly
regulated small entities, although their
number is unknown at this time. No
adverse economic impact on community
residents is expected under this action.
Further, NMFS anticipates that any
economic impacts accruing from the
action to these small entities will be
beneficial because their access to the
IFQ halibut and sablefish fisheries will
be improved.
Existing individual halibut and
sablefish QS holders and new entrants
to the IFQ fishery have potential to be
impacted by this action, but are not
directly regulated by this final rule.
Currently, there are 2,565 unique
halibut QS holders and 845 unique
sablefish QS holders across all
regulatory areas. These entities and
future fishery entrants, of which the
number is unknown, could potentially
be impacted by this action. The most
likely impact on these entities will
occur if CQE transfer of QS results in a
significant increase in the price for QS.
The Analysis indicates this impact has
not been observed in the past and is not
likely to occur in the future, given the
present constraints on CQE access to
investment capital and the range of
other factors that also influence QS
prices (see section 2.6.3.1 of the
Analysis). Therefore, existing and
potential future non-CQE QS holders are
not considered to be directly regulated
PO 00000
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Fmt 4700
Sfmt 4700
66331
by this action and are not further
analyzed in this FRFA.
Recordkeeping and Reporting
Requirements
Implementation of this final rule will
not change the recordkeeping or
reporting requirements of the
community residents that lease IFQ
from GOA CQEs or the vessels they use
to participate in the IFQ fisheries. No
additional recordkeeping or reporting by
directly regulated entities will be
required by this action.
Description of Significant Alternatives
to the Final Rule That Minimize
Adverse Impacts on Small Entities
The FRFA also requires a description
of any significant alternatives to the rule
that accomplish the stated objectives,
are consistent with applicable statutes,
and that minimize any significant
economic impact of the final rule on
small entities. The suite of potential
actions includes two alternatives and
associated options. A detailed
description of these alternatives and
options is provided in section 2.7 of the
Analysis.
The significant alternative to the final
action is the status quo alternative
(Alternative 1). Alternative 1 does not
have adverse economic impacts on
CQEs or the resident QS holders in the
CQE qualifying communities, which are
the small entities directly regulated by
this action. Alternative 1 does not meet
the objectives of the action to promote
more CQE access to QS and facilitate the
sustained participation by CQE
community residents in the IFQ
Program. The preferred alternative
implemented by this final rule,
Alternative 2, is less restrictive on CQEs
than Alternative 1, and is the least
burdensome of the available alternatives
for directly regulated small entities.
Alternative 2 specified three options
that allow CQEs to transfer and hold any
size block of QS from any QS holder or
a subset of QS holders depending on the
option and determined by the location
of the QS holder’s residence.
The Council selected the least
restrictive option under Alternative 2
(Option 1) that allows CQEs to transfer
and hold any size block of halibut or
sablefish QS. This option is the least
burdensome on directly regulated small
entities of all of the options considered,
and minimizes any significant adverse
economic impact. Allowing CQEs to
transfer and hold any size block of QS
should benefit their community
members and future community
members. Unrestricted transfer of
blocked QS should enhance the CQE’s
ability to keep QS in remote
E:\FR\FM\07NOR1.SGM
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Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations
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communities and as a result provide for
active participation of the CQE and
community residents in the halibut and
sablefish fisheries in the future. By
increasing their QS holdings under this
action, CQEs provide fishery access
through leasing to community residents
who are new entrants to the fishery or
who currently fish small QS holdings
and wish to increase their participation.
Increased QS availability to CQEs under
this action provides some operational
efficiency and results in a net benefit to
both the CQEs and their community
residents.
Option 2 allows CQE communities to
transfer and hold any size block of
halibut and sablefish QS from residents
of any CQE community. Option 2 was
not selected because it greatly limited
the potential number of small blocks
available to CQEs. Option 2 is more
burdensome on directly regulated CQEs
than Option 1.
VerDate Sep<11>2014
14:20 Nov 06, 2014
Jkt 235001
Option 3 allows CQE communities to
transfer and hold any size block of
halibut and sablefish QS from residents
of their CQE community, but not from
any non-resident. Option 3 was not
selected because it significantly limited
the potential number of small blocks
available to CQEs and the number of
CQEs that could transfer small block
QS. Option 3 is more burdensome on
directly regulated CQEs than either
Option 1 or 2. The Analysis did not
identify any other alternatives that more
effectively meet the RFA criteria to
minimize adverse economic impacts on
directly regulated small entities.
Dated: October 30, 2014.
Samuel D. Rauch III,
Deputy Assistant Administrator for
Regulatory Programs, National Marine
Fisheries Service.
Collection of Information Requirements
This rule contains no collection-ofinformation requirement subject to
review and approval by the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act (PRA).
Authority: 16 U.S.C. 773 et seq.; 1801
et seq.; 3631 et seq.; Pub. L. 108–447.
List of Subjects in 50 CFR Part 679
Alaska, Fisheries.
■
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Frm 00066
Fmt 4700
Sfmt 4700
For the reasons set out in the
preamble, NMFS amends 50 CFR part
679 as follows:
PART 679—FISHERIES OF THE
EXCLUSIVE ECONOMIC ZONE OFF
ALASKA
1. The authority citation for part 679
continues to read as follows:
■
§ 679.41
[Amended]
2. In § 679.41, remove paragraphs
(e)(4) and (e)(5).
■
3. Revise Table 21 to Part 679 to read
as follows
E:\FR\FM\07NOR1.SGM
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VerDate Sep<11>2014
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Eligible
GOA orAl
community
Frm 00067
Halibut
IFQ
regulatory
area in
which the
community
is located
Fmt 4700
07NOR1
Akhiok
3A
Angoon
2C
Chenega
Bay
3A
Chignik
3B
Chignik
Lagoon
3B
Chignik
Lake
3B
2C
Cold Bay
E:\FR\FM\07NOR1.SGM
4B
Coffman
Cove
Sfmt 4725
Adak
3B
Community
governing
body that
recommends
theCQE
May hold halibut QS in
halibut IFQ regulatory
area and vessel category
Area
2C
Area
3A
Area
3B
City of Adak
City of
Akhiok.
City of
Angoon.
Chenega IRA
Village.
City of
Chignik.
Chignik
Lagoon
Village
Council.
Chignik Lake
Traditional
Council.
City of
Coffman
Cove.
City of Cold
Area
4B
May hold sablefish
QS in sablefish IFQ
regulatory areas
Maximum
number of
CHPs that
may beheld
in halibut
IFQ
regulatory
Maximum number
of Pacific cod
endorsed non-trawl
groundfish licenses
that maybe
assigned in the
GOA groundfish
regulatory area
CG,SE,WG,
andWY
(All GOA)
Area
2C
Area
3A
Central
GOA
A,B,C
All
7
2
7
2
X
X
A,B,C
4
All
All
X
A,B,C
All
X
3
A,B,C
All
X
4
A,B,C
A,B,C
Western
GOA
X
All
All
AI
All
X
2
X
A,B,C
A,B,C
All
X
4
2
Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations
14:20 Nov 06, 2014
Table 21 to Part 679 - Eligible Communities, Halibut IFQ Regulatory Area Location, Community Governing Body That
Recommends the CQE, and the Fishing Programs and Associated Areas Where a CQE Representing an Eligible Community May Be
Permitted To Participate.
66333
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VerDate Sep<11>2014
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Community
governing
body that
recommends
the CQE
May hold halibut QS in
halibut IFQ regulatory
area and vessel category
PO 00000
Area
3B
Area
4B
Frm 00068
May hold sablefish
QS in sablefish IFQ
regulatory areas
Maximum number
of Pacific cod
endorsed non-trawl
groundfish licenses
that maybe
assigned in the
GOA groundfish
regulatory area
CG,SE,WG,
andWY
(All GOA)
Area
2C
Area
3A
Central
GOA
7
2
Area
2C
Area
3A
A,B,C
A,B,C
X
A,B,C
A,B,C
X
A,B,C
A,B,C
X
Western
GOA
Bay.
Sfmt 4725
E:\FR\FM\07NOR1.SGM
07NOR1
2C
Edna Bay
2C
Elfin Cove
2C
Game Creek
2C
N/A.
A,B,C
A,B,C
X
Gustavus
2C
Gustavus
Community
Association.
A,B,C
A,B,C
X
Halibut
Cove
3A
N/A.
Hollis
2C
Hoonah
2C
2C
IvanofBay
Fmt 4700
Craig
Hydaburg
ER07NO14.008
AI
City of Craig.
3B
Edna Bay
Community
Association.
Community
of Elfin
Cove.
Hollis
Community
Council.
City of
Hoonah.
City of
Hydaburg.
IvanofBay
Village
Council.
All
All
4
4
X
A,B,C
A,B,C
X
4
A,B,C
A,B,C
X
4
A,B,C
A,B,C
X
4
A,B,C
All
X
2
Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations
14:20 Nov 06, 2014
Eligible
GOA orAl
community
Halibut
IFQ
regulatory
aream
which the
community
is located
Maximum
number of
CHPsthat
maybe held
in halibut
IFQ
regulatory
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VerDate Sep<11>2014
Jkt 235001
PO 00000
Kake
2C
Frm 00069
07NOR1
2C
King Cove
3B
Klawock
2C
Larsen Bay
3A
Metlakatla
2C
Meyers
Chuck
2C
Nanwalek
3A
2C
3A
Ouzinkie
E:\FR\FM\07NOR1.SGM
Kasaan
Old Harbor
Sfmt 4725
3A
Naukati Bay
Fmt 4700
Karluk
3A
Community
governing
body that
recommends
the CQE
May hold halibut QS in
halibut IFQ regulatory
area and vessel category
Area
2C
City of Kake.
Native
Village of
Karluk.
City of
Kasaan.
City of King
Cove.
City of
Klawock.
City of
Larsen Bay.
Metlakatla
Indian
Village.
N/A.
Nanwalek
IRA Council.
Naukati Bay,
Inc.
City of Old
Harbor.
City of
Ouzinkie.
Area
3A
A,B,C
A,B,C
All
A,B,C
All
CG,SE,WG,
andWY
(All GOA)
Area
2C
Area
3A
Central
GOA
7
2
All
4
9
4
7
A,B,C
X
A,B,C
X
2
4
A,B,C
2
7
X
A.B.C
4
All
A,B,C
All
X
X
A,B,C
Western
GOA
4
X
X
All
AI
X
X
A,B,C
All
Area
4B
X
A,B,C
A,B,C
A,B,C
Area
3B
May hold sablefish
QS in sablefish IFQ
regulatory areas
Maximum number
of Pacific cod
endorsed non-trawl
groundfish licenses
that maybe
assigned in the
GOA groundfish
regulatory area
4
All
All
X
7
5
All
All
X
7
9
Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations
14:20 Nov 06, 2014
Eligible
GOA or AI
community
Halibut
IFQ
regulatory
aream
which the
community
is located
Maximum
number of
CHPsthat
maybe held
in halibut
IFQ
regulatory
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07NOR1
Perryville
3B
Point Baker
2C
Port
Alexander
2C
Port Graham
3A
Port Lions
3A
Port
Protection
2C
Sand Point
3B
3A
Tatitlek
Frm 00070
2C
Seldovia
ER07NO14.010
Pelican
3A
Community
governing
body that
recommends
the CQE
May hold halibut QS in
halibut IFQ regulatory
area and vessel category
Area
2C
City of
Pelican.
Native
Village of
Perryville.
Point Baker
Community.
City of Port
Alexander.
Port Graham
Village
Council.
City of Port
Lions.
Port
Protection
Community
Association.
City of Sand
Point.
City of
Seldovia.
Native
Village of
Tatitlek.
Area
3A
A,B,C
A,B,C
A,B,C
Area
3B
Area
4B
May hold sablefish
QS in sablefish IFQ
regulatory areas
Maximum number
of Pacific cod
endorsed non-trawl
groundfish licenses
that maybe
assigned in the
GOA groundfish
regulatory area
CG,SE,WG,
andWY
(All GOA)
Area
2C
Central
GOA
X
All
AI
Area
3A
Western
GOA
4
X
2
A,B,C
A,B,C
X
4
A,B,C
A,B,C
X
4
All
X
7
2
All
A,B,C
All
All
X
7
6
X
A,B,C
4
A,B,C
All
X
All
All
X
7
8
All
All
X
7
2
14
Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations
14:20 Nov 06, 2014
Eligible
GOA or AI
community
Halibut
IFQ
regulatory
area in
which the
community
is located
Maximum
number of
CHPsthat
maybe held
in halibut
IFQ
regulatory
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PO 00000
Frm 00071
Fmt 4700
Sfmt 9990
E:\FR\FM\07NOR1.SGM
Tenakee
Springs
2C
Thorne Bay
2C
Tyonek
3A
Whale Pass
2C
Yakutat
3A
Community
governing
body that
recommends
the CQE
May hold halibut QS in
halibut IFQ regulatory
area and vessel category
Area
2C
Area
3A
Central
GOA
7
2
7
3
Area
3A
A,B,C
A,B,C
X
4
A,B,C
A,B,C
X
4
All
A,B,C
All
All
AI
X
X
A,B,C
All
Area
4B
CG,SE, WG,
andWY
(All GOA)
Area
2C
City of
Tenakee
Springs.
City of
Thorne Bay.
Native
Village of
Tyonek.
Whale Pass
Community
Association.
City of
Yakutat.
Area
3B
May hold sablefish
QS in sablefish IFQ
regulatory areas
Maximum number
of Pacific cod
endorsed non-trawl
groundfish licenses
that maybe
assigned in the
GOA groundfish
regulatory area
X
07NOR1
N/A means there is not a governing body recognized in the community at this time.
CHPs are Charter halibut permits.
All means category A, B, C, and D quota share.
4
Western
GOA
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14:20 Nov 06, 2014
BILLING CODE 3510–22–P
VerDate Sep<11>2014
Eligible
GOA orAl
community
Halibut
IFQ
regulatory
area in
which the
community
is located
Maximum
number of
CHPs that
maybe held
in halibut
IFQ
regulatory
66337
ER07NO14.011
Agencies
[Federal Register Volume 79, Number 216 (Friday, November 7, 2014)]
[Rules and Regulations]
[Pages 66324-66337]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26466]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 679
[Docket No. 131115973-4885-02]
RIN 0648-BD74
Fisheries of the Exclusive Economic Zone Off Alaska; Amendment 96
to the Gulf of Alaska Fishery Management Plan; Management of Community
Quota Entities
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: NMFS publishes regulations to implement Amendment 96 to the
Fishery Management Plan for Groundfish of the Gulf of Alaska (FMP) and
an amendment to the Pacific halibut commercial fishery regulations for
waters in and off Alaska. Amendment 96 to the FMP and the regulatory
amendment modify the Individual Fishing Quota Program for the Fixed-
Gear Commercial Fisheries for Pacific Halibut and Sablefish in Waters
in and off Alaska (IFQ Program). This action will remove a regulation
that prohibits a Gulf of Alaska (GOA) Community Quota Entity (CQE) from
transferring and holding small blocks of halibut and sablefish quota
share (QS). This action will allow CQEs to acquire additional QS and
facilitate CQE community resident participation in the IFQ Program.
This action promotes the goals and objectives of the Magnuson-Stevens
Fishery Conservation and Management Act, the Northern Pacific Halibut
Act of 1982, the FMP, and other applicable law.
DATES: Effective December 8, 2014.
ADDRESSES: Electronic copies of this rule, the Regulatory Impact Review
(RIR)/Initial Regulatory Flexibility Analysis (IRFA) (collectively,
Analysis), and the proposed rule prepared for Amendment 96 and the
regulatory amendment may be obtained from https://www.regulations.gov or
from the NMFS Alaska Region Web site at https://alaskafisheries.noaa.gov. An electronic copy of the 2010 Review of the
CQE Program under the Halibut and Sablefish IFQ Program prepared by the
North Pacific Fishery Management Council (Council) is available from
the Council Web site at www.npfmc.org/community-quota-entity-program.
FOR FURTHER INFORMATION CONTACT: Peggy Murphy, (907) 586-7228.
SUPPLEMENTARY INFORMATION:
Regulatory Authority
NMFS issues regulations to implement Amendment 96 to the FMP and
revise the halibut and sablefish provisions of the CQE Program. The
Council recommended and NMFS approved the FMP in 1978 under the
authority of the Magnuson-Stevens Fishery Conservation and Management
Act (Magnuson-Stevens Act) (16 U.S.C. 1801 et seq.). Regulations
implementing the FMP and general regulations governing sablefish appear
at 50 CFR part 679. Fishing for Pacific halibut (Hippoglossus
stenolepis) is managed by
[[Page 66325]]
the International Pacific Halibut Commission (IPHC) and the Council
under the Northern Pacific Halibut Act of 1982 (Halibut Act). Section
773(c) of the Halibut Act authorizes the Council to develop regulations
that are in addition to, and not in conflict with, approved IPHC
regulations. Council-recommended regulations may be implemented by NMFS
only after approval by the Secretary of Commerce.
Background
The Notice of Availability for Amendment 96 was published in the
Federal Register on July 25, 2014 (79 FR 43377), with a 60-day comment
period that ended September 23, 2014. The Secretary approved Amendment
96 on October 21, 2014. The Council submitted the proposed rule to
NMFS, and it was published in the Federal Register on August 7, 2014
(79 FR 46237). The 30-day comment period on the proposed rule ended on
September 8, 2014. NMFS received a total of three comment letters on
Amendment 96 and the proposed rule during the comment periods. A
summary of the comments and the responses by NMFS are provided under
the ``Comments and Responses'' section of this preamble.
A detailed review of the provisions of Amendment 96, the proposed
regulations, and the rationale for these regulations is provided in the
preamble to the proposed rule (79 FR 46237, August 7, 2014). The
proposed rule is available from the NMFS Alaska Region Web site (see
ADDRESSES).
This final rule implements Amendment 96 and amends CQE Program
regulations. Amendment 96 amends the FMP to remove a restriction that
prohibits a GOA CQE from transferring and holding small blocks of
sablefish QS. This final rule amends the CQE Program regulations by
removing a restriction that prohibits a GOA CQE from transferring and
holding small blocks of halibut QS.
The IFQ and CQE Programs
The IFQ Program is a limited access privilege program for the
commercial fixed-gear halibut and sablefish (Anoplopoma fimbria)
fisheries in the exclusive economic zone off Alaska. The IFQ Program
limits access to the halibut and sablefish fisheries to those persons
holding QS in specific regulatory areas. Quota shares equate to
individual harvesting privileges that are given effect on an annual
basis through the issuance of IFQ permits. An annual IFQ permit
authorizes the permit holder to harvest a specified amount of IFQ
halibut or sablefish in a regulatory area. An explanation of the IFQ
Program can be found in the final rule implementing the program (58 FR
59375, November 9, 1993).
The Council recommended the CQE Program as an amendment to the IFQ
Program in 2002 (Amendment 66 to the FMP), and NMFS implemented the
program in 2004 (69 FR 23681, April 30, 2004). The CQE Program provides
fishing opportunities to communities in the GOA that depend on the
halibut and sablefish fisheries. Another CQE Program, known as the
Aleutian Islands CQE Program, provides similar opportunities to coastal
communities in the Aleutian Islands (79 FR 8870, February 14, 2014).
The Aleutian Islands CQE Program is not affected by this action and is
not addressed further. Where the terms ``CQE'' or ``CQE Program'' are
used in this preamble, they are referring to the regulations and
management measures applicable to the GOA CQE Program, and not to the
Aleutian Islands CQE Program.
The CQE Program allows 45 small, remote, coastal communities in the
GOA to transfer and hold catcher vessel halibut and sablefish QS in
specific regulatory areas (see Table 21 to Part 679). The CQE is the
holder of the QS and is issued the IFQ annually by NMFS. The CQE leases
the IFQ to individual GOA community residents. The program's structure
promotes community access to QS to generate participation in, and
fishery revenues from, the commercial halibut and sablefish fisheries.
Long-term retention of QS by the CQE creates a permanent asset for the
community to use. Both CQE- and non-CQE-held QS provide community
residents fishing access that promotes the economic health of
communities. The final rule implementing the CQE Program describes the
CQE Program objectives and provisions (69 FR 23681, April 30, 2004).
Several IFQ Program provisions apply to CQE Program participants.
These provisions include regulatory area and vessel size categories; QS
use caps; and QS blocks. A detailed discussion of these provisions and
others that restrict CQE transfer and holding of QS is provided in the
proposed rule preamble for this action (79 FR 46237, August 7, 2014)
and in the final rule implementing the CQE Program (69 FR 23681, April
30, 2004). Except for the small block restrictions that this final rule
will revise, these QS use provisions will continue to apply to the CQE
program participants. For background purposes, a summary of the QS use
provisions follows.
IFQ Regulatory Area and Vessel Size Categories
Fixed-gear halibut and sablefish QS is specific to regulatory area
and vessel size category. In the GOA there are three IPHC halibut
regulatory areas--Areas 2C (Southeast Alaska), 3A (Central Gulf of
Alaska), and 3B (Western Gulf of Alaska)--and four sablefish regulatory
areas: Southeast (SE), West Yakutat (WY), Central GOA (CG), and Western
GOA (WG). Each QS is assigned to a vessel category based upon the size
of the vessel from which IFQ halibut and sablefish may be harvested
and/or processed (see regulations at Sec. 679.40(a)(5)). Halibut QS
and its associated IFQ are assigned to one of four vessel categories in
each regulatory area: Freezer (catcher/processor) category (category
A); catcher vessel greater than 60 ft. length overall (LOA) (category
B); catcher vessel 36 ft. to 60 ft. LOA (category C); and catcher
vessel 35 ft. LOA or less (category D). Sablefish QS and its associated
IFQ are assigned to one of three vessel categories in each regulatory
area: Freezer (catcher/processor) category (category A); catcher vessel
greater than 60 ft. LOA (category B); and catcher vessel 60 ft. LOA or
less (category C).
CQEs may obtain by transfer and hold certain vessel categories of
QS in specified areas in order to facilitate local support of community
fishing operations (see Sec. 679.40 and Table 21 to Part 679). CQEs
may obtain by transfer and hold sablefish QS in all IFQ regulatory
areas and vessel categories. However, CQEs are restricted with respect
to the IFQ regulatory area(s) and vessel category of halibut QS they
may transfer and hold. A detailed explanation of the IFQ regulatory
area(s) and vessel category of halibut QS a CQE can transfer and hold
is provided in the proposed rule for this action (79 FR 46237, August
7, 2014).
The CQE Program authorizes CQEs to obtain by transfer and hold
catcher vessel QS: Category B, C, and D halibut QS, with area-specific
limitations for category D halibut QS; and category B and C sablefish
QS. However, the vessel size categories do not apply to IFQ derived
from QS held by a CQE, with an exception for category D halibut QS in
Area 3A. The prohibition on CQEs' transfer and holding of category D
halibut QS in Area 2C, the limitation on the amount of category D
halibut QS that an Area 3A CQE may transfer and hold, and the
requirement that IFQ derived from Area 3A category D QS must (among
other restrictions) be fished on a category D vessel are discussed in
more detail in the
[[Page 66326]]
preamble to the proposed rule for this action (79 FR 46237, August 7,
2014). These limitations were intended to balance the Council's
objective for providing CQEs with increased opportunities to acquire
halibut QS with its objective to limit potential competition for
category D halibut QS between non-CQE and CQE QS holders. Vessel
category D halibut QS is generally the least expensive category of
halibut QS because non-CQE IFQ derived from category D QS must be used
on the smallest category of catcher vessel. It is often transferred and
held by smaller operations or by new entrants to the IFQ fisheries.
CQE Program QS Use Caps
Individual community use caps limit the amount of halibut QS and
sablefish QS that each CQE may transfer and hold on behalf of a
community. The individual community cap is limited to the individual
IFQ Program use caps. Each GOA CQE is limited to transferring and
holding a maximum of 1 percent of the Area 2C halibut QS (see
regulations at Sec. 679.42(f)(2)(i)) and a maximum of 0.5 percent of
the combined Area 2C, 3A, and 3B halibut QS (see regulations at Sec.
679.42(f)(2)(ii)). Each GOA CQE also is limited to transferring and
holding a maximum of 1 percent of the Southeast sablefish QS (see
regulations at Sec. 679.42(e)(5)) and a maximum of 1 percent of all
combined sablefish areas QS (see regulations at Sec. 679.42(e)(4)(i)).
In addition to individual community use caps, cumulative community
use caps limit the amount of halibut QS and sablefish QS that all CQE
eligible communities within an IFQ regulatory area can transfer and
hold. The cumulative community use caps limit all CQEs in the GOA to a
maximum of 21 percent of the total halibut QS pool (see regulations at
Sec. 679.42(f)(5)) and a maximum of 21 percent of the total sablefish
QS pool (see regulations at Sec. 679.42(e)(6)) in each IFQ regulatory
area in the GOA.
QS Blocks
The IFQ Program initially issued QS in blocks. A block is a
consolidation of QS units that cannot be subdivided upon transfer (see
regulations at Sec. 679.41(e)(1)). One of the primary purposes of QS
blocks and the subsequent amendments to the block regulatory provisions
was to conserve small blocks of QS that could be transferred at a
relatively low cost by crew members and new entrants to the IFQ
fisheries. The IFQ Program incorporates a ``sweep-up'' provision to
allow very small blocks of QS to be permanently consolidated, up to
specified limits, so as to be practical to fish (see regulations at
Sec. Sec. 679.41(e)(2) and (e)(3)).
QS Block Use Cap
A block use cap restricts how many blocks of QS an individual can
transfer and hold. The purpose of this cap is to limit the
consolidation of blocked QS and to ensure that smaller aggregate units
would be available on the market, thereby maintaining the diversity in
operation types that exist in more remote coastal communities.
The IFQ Program also limits the number of blocks a CQE may transfer
and hold. CQEs may transfer and hold up to a maximum of 10 blocks of
halibut QS and 5 blocks of sablefish QS in each GOA regulatory area
(see regulations at Sec. 679.42(g)(1)(ii)). These limits on CQE block
holdings and the limit on where CQEs can hold QS restrict CQEs to 20
halibut QS blocks (10 blocks in each of two regulatory areas) and 20
sablefish QS blocks (5 blocks in each of four regulatory areas).
Minimum Block Size
During development of the CQE Program, the Council and NMFS
determined that if no limit on the acquisition of blocked QS was
established, then gains in CQE holdings could reflect losses of QS
holdings among residents of the same CQE communities. Therefore, CQEs
were restricted from transferring or holding blocked QS of less than a
minimum size to preserve fishing opportunities for new entrants in
certain regulatory areas.
CQE program regulations prohibit CQEs from transferring and holding
a QS block that is less than the ``sweep up'' limit, or the number of
QS units initially issued as blocks that could be combined to form a
single block (see regulations at Sec. Sec. 679.41(e)(4) and (e)(5)).
Quota share blocks that are less than or equal to the ``sweep up''
limit are known as ``small blocks.'' The amount of QS units that
comprise a small block in each IFQ regulatory area in the GOA is
specified for the halibut fishery (see regulations at Sec.
679.41(e)(3)) and for the sablefish fishery (see regulations at Sec.
679.41(e)(2)). The CQE Program regulations do not prohibit CQEs in Area
3B from transferring or holding small blocks of halibut QS. Fewer small
blocks exist in Area 3B and few new entrants in Area 3B have sought
these small blocks of halibut QS (69 FR 23681, April 30, 2004).
Actions Implemented by This Final Rule
This final rule amends the FMP and halibut and sablefish CQE
regulations to remove the restriction on CQEs' ability to purchase and
use small blocks of halibut and sablefish QS less than or equal to the
sweep-up limit currently specified in regulations at Sec. Sec.
679.41(e)(5) and 679.41(e)(4), respectively. The proposed rule preamble
provides a detailed description of the rationale for removing the
regulation prohibiting a GOA CQE from transferring and holding small
blocks of halibut QS (79 FR 46237, August 7, 2014).
Under this final rule, all CQEs in the GOA may receive by transfer
any size block of halibut and sablefish QS to hold for use by eligible
community members. CQEs will be able to transfer similar sized blocks
of QS in the market place as individual non-CQE QS holders. The
objectives of this final rule are to provide CQE communities in the GOA
with increased opportunity to transfer and hold QS and sustain
participation of CQE community residents in the IFQ halibut and
sablefish fisheries.
This final rule also updates Table 21 to Part 679 to clarify the
category of halibut QS (A, B, C and D) and IFQ regulatory area of the
QS that a CQE can transfer by area. This revision to Table 21 to Part
679 provides a clear and more comprehensive summary of CQE harvesting
privileges.
Effects of This Final Rule
A description of the anticipated effects of this action is included
in the preamble to the proposed rule and is summarized here. This final
rule provides additional opportunities for CQEs to transfer and hold
QS, and NMFS expects it will not adversely affect the ability of non-
CQE fishery participants to transfer and hold small blocks of QS. In
evaluating this action, the Council and NMFS considered the current
participation of CQE and non-CQE QS holders in the IFQ fishery, and the
potential impact on QS access and markets. The Council and NMFS
determined that removing the small block restriction from the CQE
Program should improve the ability of CQEs to obtain the most
affordable blocks of QS without negatively impacting the ability of
non-CQE fishery participants to obtain similar size blocks of QS. See
the proposed rule preamble and section 2.7.2 of the Analysis for
additional detail (see ADDRESSES).
Analysis of the percent of blocked and unblocked QS in 2013 (the
year of the most recent available data) indicates that the percentage
of small block QS relative to the total amount of QS in the GOA IFQ
regulatory areas is greater for halibut (11.3 percent of the total Area
[[Page 66327]]
2C and Area 3A halibut QS) than sablefish (3.7 percent of the total
SE., WY, CG, WG sablefish QS). Therefore, while this action will impact
sablefish QS holders, it likely will have a greater impact on halibut
QS holders. As described in the preamble to the proposed rule, section
2.7.2.1 of the Analysis considers the maximum potential impacts of the
action, which assumes that all eligible communities form CQEs and
secure funding to transfer all of the newly available small blocks of
QS, up to CQE Program limits described above and in regulations at
Sec. Sec. 679.41 and 679.42. The Analysis indicates this outcome is
unlikely given reasonably foreseeable trends in QS holdings by CQEs.
Analysis of the amount of small block QS by regulatory area in 2013
indicates that cumulative use caps on CQE QS ownership will not
constrain the maximum potential transfer of QS by CQEs. The more likely
constraint on CQE transfer and holding of QS will be the limit on the
number of blocks that a CQE can transfer and hold in any one regulatory
area (10 halibut blocks and 5 sablefish blocks). Even at maximum CQE
participation, QS block limits and the reservation of a limited amount
of Area 3A D share QS for purchase by CQEs representing communities in
Area 3A will prevent CQEs from collectively acquiring all small block
halibut QS made available under this action. Thus, the Council and NMFS
determined that small block halibut QS will continue to be available to
non-CQE participants in the IFQ halibut fishery under this final rule.
See section 2.7.2.1 of the Analysis for additional detail.
For sablefish, under allowable block limits, CQEs will be able
collectively to transfer and hold all of the available sablefish small
block QS in each IFQ regulatory area. Given the financial barriers to
CQE transfers of QS described in the Analysis and in the preamble to
the proposed rule, the Council and NMFS determined it is unlikely that
CQEs will transfer the maximum amount of small block sablefish QS made
available by this action. Thus, small block sablefish QS will continue
to be available to non-CQE participants in the IFQ sablefish fishery
under this final rule. See sections 2.6.3.1 and 2.7.2.1 of the Analysis
for additional detail.
Although this action allows CQEs to transfer and hold small blocks
of A share halibut and sablefish QS, the Council and NMFS anticipate
that CQE purchases of A share QS will be limited. Because IFQ derived
from A share halibut and sablefish QS may be caught and processed at
sea, A share QS is typically priced much higher than all other QS
categories. In addition, the total amount of A share QS issued is small
relative to all other categories of QS. Therefore, the potential impact
of allowing CQEs to purchase small blocks of A share QS on new
entrants, small-boat operations and CQE fishery participants will be
minimal under this final rule. See sections 2.6.3.1 and 2.7.2.1 of the
Analysis for additional detail.
To date, CQEs have transferred and held a limited amount of QS that
likely has not negatively impacted non-CQE fishery participants'
ability to acquire QS in the open market. Transferring and holding
small block QS will benefit CQEs, their community members, and future
community members, who tend to rely on these restricted blocks of
mainly small vessel category QS. Allowing CQEs to transfer and hold
small block QS could also enhance a CQE's ability to keep QS in remote
communities and create some operational efficiencies that provide a net
benefit to both the CQEs and their community residents.
Changes From the Proposed Rule
There are no changes to the proposed regulations (79 FR 46237,
August 7, 2014).
Comments and Responses
During the public comment period on the Notice of Availability for
Amendment 96 and the proposed rule to revise CQE program regulations,
NMFS received three comment letters. Two letters from members of the
public did not address the proposed action. These letters expressed
concerns about fishery management policies that are outside the scope
of this action. The third comment letter expressed concerns about and
did not support Amendment 96 and the proposed rule. The letter was
submitted by an organization representing non-CQE IFQ Program
participants and contained six comments. NMFS' responses to the public
comments on Amendment 96 and the proposed rule are presented below. No
changes were made to this final rule in response to the comment letters
received.
Comment 1: The commenter states that Amendment 96 violates National
Standard 4 of the Magnuson-Stevens Act, which specifies that
conservation and management measures shall not discriminate between
residents of different states and that any allocation of fishing
privileges must be fair and equitable. Amendment 96 benefits CQEs and
residents of CQE communities at the expense of non-residents of Alaska
that participate in the IFQ fishery. This is unfair, discriminatory,
and contrary to the requirements of National Standard 4.
Response: NMFS disagrees that Amendment 96 violates National
Standard 4 of the Magnuson-Stevens Act. The Council and NMFS have
determined that Amendment 96 is consistent with the requirements of the
Magnuson-Stevens Act. The CQE Program was established to allow a group
of non-profit entities to hold QS on behalf of residents of specific
small, geographically isolated, rural communities located adjacent to
the coast of the GOA with a historical link to the halibut and
sablefish fisheries. Communities that do not meet the eligibility
criteria may not participate in the program and do not benefit from the
CQE Program. Communities that are excluded from the CQE Program include
Alaska and non-Alaska communities. Therefore, this action is not
predicated on an effort to discriminate between residents of different
states.
Amendment 96 removes a prohibition on CQEs' transferring and
holding small blocks of QS. Non-CQE participants in the IFQ Program are
not subject to this prohibition, so this action is not predicated upon
any effort to unfairly advantage CQEs.
As described in the proposed rule preamble (79 FR 46237, August 7,
2014) and in section 2.2 of the Analysis, Amendment 96 and this final
rule promote the Council's objective to provide an opportunity for CQE
communities to acquire additional QS and facilitate sustained
participation by CQE community residents in the IFQ Program. Since the
inception of the IFQ Program, the number of resident halibut and
sablefish QS holders has declined substantially in CQE communities.
This transfer of QS and the associated fishing effort from CQE
communities has limited the ability of residents to locally transfer
and hold QS and reduced the diversity of fisheries to which fishermen
in these communities have access (see section 2.6.1.2 of the Analysis).
Fisheries participation by CQE community residents may also be limited
because these individuals live in small, remote coastal communities and
have a higher cost of participation than individuals living in larger
communities with road access to supplies and markets (see section 2.6.3
of the Analysis). The Council and NMFS intend for Amendment 96 and this
final rule to improve the ability of CQEs to obtain the most affordable
blocks of QS and lease annual IFQ to community residents without
negatively impacting the ability of non-CQE fishery
[[Page 66328]]
participants to obtain similar size blocks of QS. Also see the response
to comment 3.
Comment 2: The commenter states that the Council's recommendation
of Amendment 96 without considering their proposal is unfair and
discriminatory. In February 2013, the commenter submitted a proposal to
the Council that was similar to Amendment 96. The commenter proposed
increasing the small block QS transfer and holding limits that apply to
non-CQE participants in the IFQ Program. The Council denied the
proposal and referred it to the IFQ Committee for consideration.
Response: The Council did not deny the commenter's proposal to
increase the amount of small block QS that may be transferred and held
by non-CQE fishery participants, but referred the proposal to its IFQ
Committee for review and discussion (see the minutes of the February
2013 Council meeting at https://www.npfmc.org/wp-content/PDFdocuments/minutes/213Council.pdf.). NMFS notes that referral of the commenter's
proposal to the IFQ Committee is consistent with the established
Council process for addressing proposed revisions to the IFQ Program.
Under its long-established process, the Council accepts proposals from
the public until a scheduled date prior to convening the IFQ Committee.
The Council's IFQ Committee plays a significant role in reviewing
proposals and developing recommendations to the Council for
improvements to the IFQ Program. The IFQ Committee is a Council
advisory body comprised of participants in the IFQ Program. The Council
relies on the committee to review and prioritize the large numbers of
proposals to revise the components of the IFQ Program that it receives
each year. For additional detail on the Council's process for reviewing
the IFQ Program, see the NMFS Web site at https://alaskafisheries.noaa.gov/ram/ifq/ifqpaper.htm. NMFS has determined that
Amendment 96 and this final rule are consistent with the Magnuson-
Stevens Act and do not unfairly disadvantage or discriminate against
non-CQE participants in the IFQ program. See the response to Comment 1.
Comment 3: The commenter states that CQEs have an unfair financial
advantage compared to non-CQE participants in the IFQ Program. CQEs are
tax-exempt and can retain more revenue from their fishing activities
than IFQ program participants who must pay taxes. The commenter is also
aware of efforts to establish a low interest loan program for CQEs to
purchase halibut and sablefish QS. The tax-exempt status of CQEs and
the potential loan program discriminate against non-CQE fishermen and
make it difficult for them to purchase QS.
Response: NMFS disagrees that that CQEs have an unfair financial
advantage compared to non-CQE participants in the IFQ Program. Section
2.6.3.4 in the Analysis and the proposed rule preamble describe that
CQEs have had significant difficulties obtaining financing to transfer
and hold QS, and that these difficulties have created a barrier to
participation in the CQE Program. The Analysis describes that at
prevailing QS prices, it is difficult or infeasible for CQEs to
transfer and hold QS because they do not generally have assets to offer
as collateral for a loan. In addition, the administrative cost
necessary to establish and support the CQE organization likely makes it
more difficult for a CQE to obtain financing to transfer and hold QS
than for a non-CQE fishery participant who does not incur these
administrative costs. Because CQEs hold QS and lease annual IFQ to
local residents, there is a layer of both administrative cost and
fiduciary responsibility that has made it difficult for CQEs to access
funding sources to transfer and hold QS. The administrative overhead
for a CQE includes arranging and maintaining financing for the QS,
negotiating transfers of QS, developing and administering the criteria
for distributing IFQ among potential lessees, and submitting annual
reports to NMFS detailing its activities. As described in the Analysis,
the prevailing price of QS has been sufficiently high that CQEs have
not been able to afford the administrative costs, while leasing the
shares to community residents at a reasonable rate, and still have
funds remaining for debt repayment. This information provides strong
evidence that CQEs do not have a financial advantage over non-CQE
fishery participants.
The Council and NMFS intend for this final rule to improve the
ability of CQEs to transfer and hold QS by removing the prohibition on
CQEs' holding small block QS. Removing this prohibition will provide
CQEs with the opportunity to transfer and hold QS that is available at
a lower cost, and therefore will be more affordable for CQEs.
As described in section 2.7.2 of the Analysis and in the preamble
to the proposed rule, NMFS anticipates that Amendment 96 and this final
rule will not adversely affect the ability of non-CQE participants to
transfer and hold small blocks of QS. NMFS expects that this final rule
may allow some redistribution of QS because it is intended to have
distributional effects among QS holders by promoting the transfer of QS
from existing QS holders to the CQE. However, based upon the Analysis,
the Council and NMFS anticipate this final rule may provide additional
opportunity for CQEs to transfer and hold more affordable QS without
negatively impacting non-CQE participants in the IFQ Program (see
section 2.7.3 of the Analysis for additional detail).
Section 2.7.2.4 of the Analysis and the proposed rule preamble note
that removing the prohibition on CQEs purchasing small blocks of
halibut and sablefish QS could create the potential for greater
competition in the market for purchasing QS, which could result in
higher QS prices. However, the Analysis notes that such increases in QS
prices would occur only if CQEs can afford to pay as much or more for
small block QS than non-CQE fishery participants. As described above
and in section 2.6.3.4 of the Analysis, the difficulties that CQEs have
faced in obtaining financing to transfer and hold QS are unlikely to
change under Amendment 96 and this final rule. Therefore, the Council
and NMFS determined it is unlikely that CQEs will accrue the financial
assets to transfer a quantity of QS that would have a significant
impact on QS price or on the ability of non-CQE fishery participants'
to transfer and hold QS.
Several other factors are also likely to limit the impact of this
final rule on non-CQE fishery participants. The most important factors
are (1) a CQE must receive QS by transfer on the open market from a
willing seller, (2) the amount of small block QS made available to CQEs
through this final rule is limited to 11.3 percent of the combined
halibut QS pool for Areas 2C and 3A, and 3.7 percent of the combined
sablefish QS pool for the SE., WY, CG, and WG areas (see section
2.7.2.1 in the Analysis), and (3) each CQE will be subject to existing
restrictions for CQEs on transferring and holding QS that are specified
in regulation. Section 2.7.2.1 in the Analysis and the proposed rule
preamble note that these restrictions include regulatory area
designations applicable to all QS holders, individual and cumulative QS
use caps specific to CQEs, a prohibition on CQEs transferring and
holding category D halibut QS in Area 2C, a limitation on the amount of
category D halibut QS that a CQE in Area 3A may transfer and hold, and
the requirement that IFQ derived from Area 3A category D QS must (among
other restrictions) be
[[Page 66329]]
fished on a category D vessel. Therefore, NMFS does not anticipate that
this final rule will negatively impact the ability of non-CQE fishery
participants to transfer and hold small blocks of QS. NMFS has
determined that Amendment 96 and this final rule are consistent with
the Magnuson-Stevens Act and do not unfairly disadvantage or
discriminate against non-CQE participants in the IFQ program. See the
response to Comment 1.
NMFS notes that development of a loan program for CQEs to transfer
and hold QS is outside NMFS' authority and the scope of this action.
The final rule implementing the CQE Program describes that the Council
and NMFS have determined that a non-profit entity is the appropriate
type of entity to transfer and hold halibut and sablefish QS on behalf
of CQE communities (69 FR 23681, April 30, 2004). The decision to grant
non-profit organizations tax-exempt status is based on State of Alaska
law and is outside NMFS's authority and the scope of this action.
Comment 4: The commenter notes that the proposed rule states that
the CQE program is essential to the survival of small Alaska
communities because members of these communities either sold their
initially issued QS or moved from their communities. The proposed rule
also suggests that CQEs will offer ``favorable lease terms as compared
to the open market.'' The commenter disagrees with these assertions.
The CQE program will not address the issue of initial recipients
selling their QS and moving from communities. The price of QS will rise
and fall with the demands of the open market and a CQE cannot change
this by offering favorable lease rates to community residents.
Response: The final rule implementing the GOA CQE Program (69 FR
23681, April 30, 2004) and the proposed rule to implement Amendment 96
(79 FR 46237, August 7, 2014) describe that the Council and NMFS have
determined that the CQE Program promotes community access to QS to
generate participation in, and fishery revenues from, the commercial
halibut and sablefish fisheries. The Council and NMFS recognize that
significant barriers exist to CQEs obtaining financing to transfer and
hold QS and these barriers have limited participation in the program.
Amendment 96 and this final rule are intended to provide an opportunity
for increased participation in the CQE program. The amendment allows
CQEs to transfer and hold small block QS, which is generally available
at a lower price than larger QS blocks or unblocked QS (see section
2.6.2 in the Analysis for additional detail).
Residents of CQE communities who lease QS are likely to pay a lower
rate to lease IFQ from a CQE than they would pay to lease IFQ from a
non-CQE QS holder. Section 2.7.1.4 in the Analysis describes that the
two currently active CQEs lease IFQ to community residents at a 45-
percent rate, meaning that the CQE recovers 45 percent of the gross
fishing revenue. The CQEs use these funds to repay the debt from
purchasing QS and cover administrative costs, and may use some of the
funds to transfer and hold additional QS in the future. NMFS cannot
compare this 45-percent rate to the terms offered in private IFQ
leases, since private parties do not submit lease data to NMFS, but it
is likely that CQEs are offering favorable lease terms in relation to
the market average. Based on this information, the Council and NMFS
have determined that Amendment 96 and this final rule may enhance the
ability of CQEs to transfer and hold QS for the long-term benefit of
community residents. Also see the response to Comment 3.
Comment 5: The commenter states that individuals who are not
eligible to lease IFQ from a CQE would be disadvantaged compared to
fishermen harvesting CQE-held IFQ because those fishermen are subject
to less restrictive regulations. For example, CQE fishery participants
are exempt from the requirement to harvest IFQ on a vessel that
corresponds to the vessel size category of the IFQ. In addition, CQEs
must hire skippers to harvest annual IFQ. Non-CQE fishery participants
are no longer allowed to hire a skipper without additional
restrictions.
Response: The final rule implementing the GOA CQE Program (69 FR
23681, April 30, 2004) and the proposed rule to implement Amendment 96
(79 FR 46237, August 7, 2014) describe that the Council and NMFS have
identified specific objectives for the CQE Program and rationale for
specific provisions that result in different requirements for CQE and
non-CQE participants in the IFQ fisheries (see sections 2.6.1.2 and
2.6.2 in the Analysis for additional detail). These fishery provisions
and requirements are consistent with the goals for the IFQ Program (58
FR 59375, November 9, 1993). NMFS has determined that this final rule
meets the Council's objective to provide CQE communities in the GOA
with long-term opportunities to access the halibut and sablefish
fisheries, is consistent with the goals for the IFQ Program, and is not
likely to have significant effects on individual participants in the
IFQ fisheries or residents of non-CQE communities.
In recommending Amendment 96, the Council and NMFS balanced the
objective of promoting community access to QS and IFQ with the intent
to maintain entry-level opportunities for fishermen residing in other
fishery-dependent communities, consistent with the goals of the IFQ
Program. This final rule allows IFQ derived from category B and C
catcher vessel share QS held by a CQE to be fished from a vessel of any
size regardless of the QS vessel category from which the IFQ was
derived (see Sec. 679.42(a)(2)(iii)). As described in section 2.6.1.2
of the Analysis and the final rule implementing the CQE Program,
allowing IFQ derived from category B and C catcher vessel share QS held
by a CQE to be fished from a vessel of any size facilitates the use of
IFQ on the wide range of vessel types that fish in GOA communities.
NMFS notes that the CQE Program does not provide this flexibility
for CQEs holding category D catcher vessel QS in Area 3A. Regulations
at Sec. 679.42(a)(2)(iii) specify that IFQ derived from category D
catcher vessel QS held by a CQE must be fished on a category D vessel
(35 ft. LOA or less), consistent with requirements for non-CQE QS
holders. The Council and NMFS determined that CQEs should be subject to
the same rules as other QS holders participating in the IFQ Program
with regard to the use of category D catcher vessel QS in Area 3A. The
comment refers to IFQ Program regulations that require, with some
exceptions, a catcher vessel QS holder to be onboard the vessel during
harvest and offloading of IFQ derived from their QS. As described in
the final rule to implement the IFQ Program, this requirement at Sec.
679.42(c) is intended to promote stewardship by providing active
fishermen with a vested interest in the long-term productivity of the
halibut and sablefish resources. CQE community fishermen do not hold QS
but instead are allowed to lease IFQ derived from CQE-held QS. This
final rule maintains regulations at Sec. 679.42(c) and Sec.
679.42(i)(5) that require that during harvest and offloading, the
lessee must be onboard the vessel fishing the IFQ leased from the CQE,
consistent with the owner onboard objective for the IFQ Program. The
regulations at Sec. 679.42(i)(5) specify that an individual who
receives IFQ derived from QS held by a CQE may not designate a hired
master to fish the community IFQ; the individual must be on board the
vessel when the IFQ is being fished.
[[Page 66330]]
Individuals who hold leases of IFQ from a CQE are considered IFQ permit
holders and are subject to the regulations that govern other IFQ permit
holders.
Comment 6: A CQE is allowed to lease its IFQ and is able to benefit
from QS through multiple generations. A non-CQE QS holder's
beneficiaries do not receive the long-term benefit of the QS after the
death of the non-CQE QS holder. The non-CQE QS holder's beneficiary may
only lease the resulting IFQ for three years and after that time, the
beneficiary must meet the eligibility requirements to hold QS and must
be onboard the vessel when the IFQ is harvested, or they must transfer
the QS. The commenter states that this is unfair to non-CQE fishery
participants, will reduce the amount of QS on the market, and lead to
higher QS purchase prices.
Response: The commenter is correct that a CQE could lease IFQ to
multiple generations of CQE community fishermen. NMFS notes this is
consistent with the CQE Program objective to provide CQE community
residents with long-term opportunities to access the halibut and
sablefish fisheries, as described in the proposed rule, in section
2.6.1.2 of the Analysis, and in the final rule implementing the CQE
Program (69 FR 23681, April 30, 2004).
The commenter contrasts the CQE Program objective to promote long-
term QS holdings by the community entity with regulations at Sec.
679.41(k) that impose a limit on the amount of time a non-CQE QS
holder's beneficiary may hold the QS after the non-CQE QS holder's
death, if the beneficiary is not otherwise eligible to hold QS under
IFQ Program requirements at Sec. 679.41(d).
As described in the response to Comment 4, the Council and NMFS
have determined that the CQE Program structure promotes community
access to QS to generate participation in, and fishery revenues from,
the commercial halibut and sablefish fisheries. To meet the objectives
for the CQE Program, the Council and NMFS have developed different
requirements for CQE and non-CQE participants in the IFQ fisheries (see
the response to Comment 5). NMFS has determined that Amendment 96 and
this final rule meet the Council's objective to provide the CQE
communities with long-term opportunities to access the halibut and
sablefish IFQ fisheries, is consistent with the goals for the IFQ
Program, and is not likely to have significant effects on individual
participants in the IFQ fisheries or residents of non-CQE communities.
Section 2.6.3.1 of the Analysis and the proposed rule preamble for
this action (79 FR 46237, August 7, 2014) indicate that this action is
not expected to result in increased demand for QS or a higher price for
QS. These impacts have not been observed in the past and are not likely
to occur in the future, given the present constraints on CQE access to
investment capital and the range of other factors that also influence
QS prices (see the response to Comment 3). Therefore, NMFS does not
consider existing and potential future non-CQE QS holders to be
significantly impacted by this action.
Classification
The Administrator, Alaska Region, NMFS determined that Amendment 96
to the FMP is necessary for the conservation and management of the
sablefish IFQ and CQE fisheries and that it is consistent with the
Magnuson-Stevens Act and other applicable laws.
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 as long as those regulations
do not conflict with IPHC regulations. The final action is consistent
with the Council's authority to allocate halibut catches among fishery
participants in the waters off Alaska.
This rule has been determined to be not significant for purposes of
Executive Order 12866.
Small Entity Compliance Guide
Section 212 of the Small Business Regulatory Enforcement Fairness
Act of 1996 states that, for each rule or group of related rules for
which an agency is required to prepare a final regulatory flexibility
analysis (FRFA), the agency shall publish one or more guides to assist
small entities in complying with the rule, and shall designate such
publications as ``small entity compliance guides.'' The agency shall
also explain the actions a small entity is required to take to comply
with a rule or group of rules. The preamble to the proposed rule and
this final rule serve as the small entity compliance guide. This action
does not require any additional compliance from small entities that is
not described in the proposed and final rules. Copies of these rules
are available from the NMFS Alaska Region Web site at https://alaskafisheries.noaa.gov.
Final Regulatory Flexibility Analysis
A final regulatory flexibility analysis (FRFA) is required by the
Regulatory Flexibility Act (RFA). This FRFA incorporates the Initial
Regulatory Flexibility Analysis (IRFA) prepared for the proposed rule
and addresses the applicable requirements of section 604 of the RFA.
The IRFA was summarized in the ``Classification'' section of the
preamble to the proposed rule.
Analytical requirements for the FRFA are described in the RFA,
sections 604(a)(1) through (5), and summarized below.
The FRFA must contain:
1. A succinct statement of the need for, and objectives of, the
rule;
2. A summary of the significant issues raised by the public
comments in response to the initial regulatory flexibility analysis, a
summary of the assessment of the agency of such issues, and a statement
of any changes made in the proposed rule as a result of such comments;
3. A description and an estimate of the number of small entities to
which the rule will apply, or an explanation of why no such estimate is
available;
4. A description of the projected reporting, recordkeeping, and
other compliance requirements of the rule, including an estimate of the
classes of small entities which will be subject to the requirement and
the type of professional skills necessary for preparation of the report
or record; and
5. A description of the steps the agency has taken to minimize the
significant economic impact on small entities consistent with the
stated objectives of applicable statutes, including a statement of the
factual, policy, and legal reasons for selecting the alternative
adopted in the final rule and why each one of the other significant
alternatives to the rule considered by the agency which affect the
impact on small entities was rejected.
The ``universe'' of entities to be considered in a FRFA generally
includes only those small entities that can reasonably be expected to
be directly regulated by the final rule. If the effects of the rule
fall primarily on a distinct segment of the industry, or portion
thereof (e.g., user group, gear type, geographic area), that segment is
considered the universe for purposes of this analysis.
In preparing an FRFA, an agency may provide either a quantifiable
or
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numerical description of the effects of a rule (and alternatives to the
rule), or more general descriptive statements, if quantification is not
practicable or reliable.
Need for and Objectives of This Final Rule
The objectives of this final rule are to provide CQE communities in
the GOA with increased opportunity to transfer and hold QS and sustain
participation of CQE community residents in the IFQ halibut and
sablefish fisheries. An explanation of the need for this final rule is
described in preamble of this rule and is not repeated here. This
information also was described in detail in the preamble to the
proposed rule (79 FR 46237, August 7, 2014).
Comments on the IRFA
NMFS published the proposed rule on August 7, 2014 (79 FR 46237),
with comments invited through September 8, 2014. NMFS received three
comment letters from the public on Amendment 96 and the proposed rule.
None of these comments specifically addressed the IRFA, but Comments 3,
4, 5 and 6 expressed concerns about the potential impacts of allowing
CQEs in the GOA to transfer and hold small blocks of QS on non-CQE
participants in the halibut and sablefish IFQ fisheries. NMFS'
responses to these comments explain that the Council and NMFS
considered the potential impacts of Amendment 96 and the final rule on
participants in the halibut and sablefish fisheries and determined that
it is unlikely to have negative impacts on non-CQE participants in the
halibut and sablefish fisheries. Several provisions of the CQE Program,
including QS blocks and QS use limits, restrict the amount of total QS
that a CQE may obtain by transfer and hold. NMFS has determined that
this final rule balances the objectives of the action with
consideration of the impacts on non-CQE participants in the halibut and
sablefish fisheries.
No comments on the proposed rule were filed with NMFS by the Chief
Counsel for Advocacy of the Small Business Administration.
Number and Description of Directly Regulated Small Entities
The determination of the number and description of small entities
regulated by this action is based on small business standards
established by the Small Business Administration (SBA). On June 12,
2014, the SBA issued a final rule revising the small business size
standards for several industries effective July 14, 2014 (79 FR 33647,
June 12, 2014). The rule increased the size standard for Finfish
Fishing from $19.0 to 20.5 million. The new size standards were used to
prepare the FRFA for this action.
At present, NMFS does not have sufficient ownership and affiliation
information to determine precisely the number of entities in the IFQ
Program that are ``small'' based on SBA guidelines, nor the number that
will be adversely impacted by the present action. This FRFA therefore
assumes that all directly regulated operations are small.
The action applies to 45 CQEs that are considered small entities
under the RFA (Section 601(3)). The CQEs qualify as small not-for-
profit organizations that are not dominant in their field. CQEs
represent small communities that directly benefit from this action.
Each of the communities qualifies as a small entity under the RFA since
they are governments of towns or villages with populations less than
50,000 people. The CQE obtains by transfer and holds QS and makes the
resulting IFQ available by lease to eligible harvesters that are
community residents. Those harvesters are required to make a series of
reports and declarations to NMFS in order to be found eligible to
participate. Therefore, those harvesters are directly regulated small
entities, although their number is unknown at this time. No adverse
economic impact on community residents is expected under this action.
Further, NMFS anticipates that any economic impacts accruing from the
action to these small entities will be beneficial because their access
to the IFQ halibut and sablefish fisheries will be improved.
Existing individual halibut and sablefish QS holders and new
entrants to the IFQ fishery have potential to be impacted by this
action, but are not directly regulated by this final rule. Currently,
there are 2,565 unique halibut QS holders and 845 unique sablefish QS
holders across all regulatory areas. These entities and future fishery
entrants, of which the number is unknown, could potentially be impacted
by this action. The most likely impact on these entities will occur if
CQE transfer of QS results in a significant increase in the price for
QS. The Analysis indicates this impact has not been observed in the
past and is not likely to occur in the future, given the present
constraints on CQE access to investment capital and the range of other
factors that also influence QS prices (see section 2.6.3.1 of the
Analysis). Therefore, existing and potential future non-CQE QS holders
are not considered to be directly regulated by this action and are not
further analyzed in this FRFA.
Recordkeeping and Reporting Requirements
Implementation of this final rule will not change the recordkeeping
or reporting requirements of the community residents that lease IFQ
from GOA CQEs or the vessels they use to participate in the IFQ
fisheries. No additional recordkeeping or reporting by directly
regulated entities will be required by this action.
Description of Significant Alternatives to the Final Rule That Minimize
Adverse Impacts on Small Entities
The FRFA also requires a description of any significant
alternatives to the rule that accomplish the stated objectives, are
consistent with applicable statutes, and that minimize any significant
economic impact of the final rule on small entities. The suite of
potential actions includes two alternatives and associated options. A
detailed description of these alternatives and options is provided in
section 2.7 of the Analysis.
The significant alternative to the final action is the status quo
alternative (Alternative 1). Alternative 1 does not have adverse
economic impacts on CQEs or the resident QS holders in the CQE
qualifying communities, which are the small entities directly regulated
by this action. Alternative 1 does not meet the objectives of the
action to promote more CQE access to QS and facilitate the sustained
participation by CQE community residents in the IFQ Program. The
preferred alternative implemented by this final rule, Alternative 2, is
less restrictive on CQEs than Alternative 1, and is the least
burdensome of the available alternatives for directly regulated small
entities. Alternative 2 specified three options that allow CQEs to
transfer and hold any size block of QS from any QS holder or a subset
of QS holders depending on the option and determined by the location of
the QS holder's residence.
The Council selected the least restrictive option under Alternative
2 (Option 1) that allows CQEs to transfer and hold any size block of
halibut or sablefish QS. This option is the least burdensome on
directly regulated small entities of all of the options considered, and
minimizes any significant adverse economic impact. Allowing CQEs to
transfer and hold any size block of QS should benefit their community
members and future community members. Unrestricted transfer of blocked
QS should enhance the CQE's ability to keep QS in remote
[[Page 66332]]
communities and as a result provide for active participation of the CQE
and community residents in the halibut and sablefish fisheries in the
future. By increasing their QS holdings under this action, CQEs provide
fishery access through leasing to community residents who are new
entrants to the fishery or who currently fish small QS holdings and
wish to increase their participation. Increased QS availability to CQEs
under this action provides some operational efficiency and results in a
net benefit to both the CQEs and their community residents.
Option 2 allows CQE communities to transfer and hold any size block
of halibut and sablefish QS from residents of any CQE community. Option
2 was not selected because it greatly limited the potential number of
small blocks available to CQEs. Option 2 is more burdensome on directly
regulated CQEs than Option 1.
Option 3 allows CQE communities to transfer and hold any size block
of halibut and sablefish QS from residents of their CQE community, but
not from any non-resident. Option 3 was not selected because it
significantly limited the potential number of small blocks available to
CQEs and the number of CQEs that could transfer small block QS. Option
3 is more burdensome on directly regulated CQEs than either Option 1 or
2. The Analysis did not identify any other alternatives that more
effectively meet the RFA criteria to minimize adverse economic impacts
on directly regulated small entities.
Collection of Information Requirements
This rule contains no collection-of-information requirement subject
to review and approval by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act (PRA).
List of Subjects in 50 CFR Part 679
Alaska, Fisheries.
Dated: October 30, 2014.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
For the reasons set out in the preamble, NMFS amends 50 CFR part
679 as follows:
PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA
0
1. The authority citation for part 679 continues to read as follows:
Authority: 16 U.S.C. 773 et seq.; 1801 et seq.; 3631 et seq.;
Pub. L. 108-447.
Sec. 679.41 [Amended]
0
2. In Sec. 679.41, remove paragraphs (e)(4) and (e)(5).
0
3. Revise Table 21 to Part 679 to read as follows
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[FR Doc. 2014-26466 Filed 11-6-14; 8:45 am]
BILLING CODE 3510-22-P