Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Crab Rationalization Program, 15891-15899 [2015-06928]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 80, Number 58 (Thursday, March 26, 2015)]
[Rules and Regulations]
[Pages 15891-15899]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-06928]



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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 902

50 CFR Part 680

[Docket No. 101214615-5254-02]
RIN 0648-BA61


Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea 
and Aleutian Islands Crab Rationalization Program

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

ACTION: Final rule.

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SUMMARY: NMFS issues regulations to implement Amendment 31 to the 
Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner 
Crabs (FMP). These regulations revise the rules governing the 
acquisition, use, and retention of quota share established for captains 
and crew, known as crew quota share or C shares, under the Crab 
Rationalization Program (CR Program). Regulations implementing 
Amendment 31 temporarily expand the eligibility requirements for 
individuals wishing to acquire C share Quota Share (QS) by transfer; 
establish minimum participation requirements for C share QS holders to 
be eligible to receive an annual allocation of Individual Fishing Quota 
(IFQ); establish minimum participation requirements for C share QS 
holders to be eligible to retain their C share QS and an administrative 
process for revocation of an individual's C share QS if he or she fails 
to satisfy the minimum participation requirements; establish a 
regulatory mechanism to ensure that three percent of the total 
allowable catch (TAC) for each CR Program crab fishery is allocated as 
IFQ to holders of C share QS; and remove the prohibition on leasing C 
share IFQ. In addition, this final rule implements a regulatory 
amendment to the CR Program that: Establishes an earlier deadline for 
filing annual IFQ, individual processing quota (IPQ), and crab 
harvesting cooperative IFQ applications, which increases the amount of 
time during which NMFS will suspend the processing of IFQ and IPQ 
transfer applications; shortens the amount of time in which to appeal 
an initial administrative determination to withhold issuance of IFQ or 
IPQ; and provides that an applicant's proof of timely filing for IFQ, 
IPQ, or cooperative IFQ creates a presumption of timely filing. 
Finally, this final rule revises the reporting period and due date for 
CR Program registered crab receiver (RCR) Ex-vessel Volume and Value 
Reports. This final rule is necessary to ensure that individuals who 
hold C shares are active in the CR Program fisheries and to ensure that 
application deadlines provide adequate time to resolve disputes. This 
final rule is intended to promote the goals and objectives of the 
Magnuson-Stevens Fishery Conservation and Management Act (MSA), the 
FMP, and other applicable laws.

DATES: Effective May 1, 2015.

ADDRESSES: Electronic copies of Amendment 31 to the FMP, the Regulatory 
Impact Review (RIR)/Initial Regulatory Flexibility Analysis (IRFA), and 
the Categorical Exclusion prepared for this action may be obtained from 
https://www.regulations.gov or from the Alaska Region Web site at https://alaskafisheries.noaa.gov. The Environmental Impact Statement, RIR, and 
Social Impact Assessment prepared for the CR Program are available from 
the NMFS Alaska Region Web site at https://alaskafisheries.noaa.gov.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
rule may be submitted to NMFS Alaska Region, P.O. Box 21668, Juneau, AK 
99802, Attn: Ellen Sebastian, Records Officer; in person at NMFS Alaska 
Region, 709 West 9th Street, Room 420A, Juneau, AK; and by email to 
OIRA_Submission@omb.eop.gov or faxed to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Rachel Baker, 907-586-7228.

SUPPLEMENTARY INFORMATION: This final rule implements Amendment 31 to 
the FMP and regulatory amendments to the CR Program. NMFS published a 
notice of availability (NOA) for Amendment 31 on December 15, 2014 (79 
FR 74058). The comment period on the NOA for Amendment 31 ended on 
February 13, 2015. The Secretary approved Amendment 31 on March 12, 
2015, after accounting for information from the public, and determining 
that Amendment 31 is consistent with the FMP, the MSA, and other 
applicable law. NMFS published a proposed rule to implement Amendment 
31 and the regulatory amendments on December 24, 2014 (79 FR 77427). 
The comment period on the proposed rule ended on January 23, 2015. NMFS 
received three comment letters during the comment periods on Amendment 
31 and the proposed rule. The letters contained three unique comments. 
A summary of these comments and NMFS's responses are provided in the 
Comments and Responses section of this preamble.

Background

CR Program

    Below is a brief description of the CR Program and the elements of 
that Program that apply to Amendment 31 and this final rule. For a more 
detailed description of the CR Program, please see section 2.3 of the 
RIR/IRFA (see ADDRESSES) and the preamble of the proposed rule (79 FR 
77427; December 24, 2014).
    Under the CR Program, NMFS issued four types of QS based on 
qualifying harvest histories in certain BSAI crab fisheries during a 
specific period of time defined under the CR Program. Two of these 
types of QS were issued as C share QS to holders of State of Alaska 
Commercial Fisheries Entry Commission Interim Use Permits, generally 
vessel captains who met specific historic and recent participation 
requirements in CR Program fisheries. Vessel captains who did not meet 
both the historic and recent participation criteria did not receive 
initial allocations of C share QS. Three-percent of the QS pool for 
each CR Program fishery was issued as C share QS. The Council's intent 
in creating C share QS was to provide both a QS holding opportunity for 
long-term fishery participants who intended to remain active in the 
fisheries and an entry level QS acquisition opportunity for new 
entrants.
    The Council intended IFQ derived from C share QS to be harvested by 
individuals active in the CR Program fisheries. To achieve this goal, 
CR Program regulations required that individuals wishing to acquire C 
share QS to demonstrate that they had at least 150 days of sea time in 
a harvesting capacity in any U.S. commercial fishery and recent 
participation in one of the CR Program fisheries by making a landing of 
CR Program crab in the year preceding the application to acquire C 
share QS.
    Implementation of the CR Program resulted in a significant 
reduction in harvesting vessel fleet size and a commensurate reduction 
in employment opportunities for vessel crew. Efficiencies gained under 
the CR Program provide harvesting vessels the option to not participate 
in each fishing season for each CR Program crab species. These changes 
in fishing practices have made it difficult for individuals who wish to 
acquire C share QS to satisfy the participation requirement of making a 
landing of CR

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Program crab in the year preceding the application to acquire C share 
QS.
    In addition, holders of C share QS may become members of harvesting 
cooperatives and, through contractual terms determined by the 
harvesting cooperative, may have IFQ derived from their C share QS 
harvested by other fishery participants. This ability to lease C share 
IFQ within a harvesting cooperative, coupled with the fleet contraction 
and changes in fishing practices occurring since implementation of the 
CR Program, rendered the initial regulations related to acquisition of 
C share QS ineffective in ensuring that those QS are held by active 
participants in the CR Program fisheries.

Application Deadlines

    The crab fishing year begins on July 1 and ends on June 30. 
Annually, QS and PQS holders must apply for allocations of IFQ and IPQ, 
respectively, for the upcoming crab fishing year. QS holders apply for 
annual IFQ through an individual application. Currently, they must 
indicate on this application whether or not they are joining a 
cooperative. If they are joining a cooperative that year, the 
cooperative's annual IFQ application must include the QS holder's 
annual IFQ application (or a copy of that application). Because IPQ is 
not subject to cooperative management, a PQS holder applies for IPQ 
directly to NMFS, and NMFS issues IPQ directly to the PQS holder. Prior 
to this final rule, all applications for IFQ, IPQ, and cooperative IFQ 
had to be filed with the NMFS Restricted Access Management Program 
(RAM) by August 1. To aid QS and PQS holders in meeting the application 
deadline, NMFS provides application forms on its Web site (see 
ADDRESSES), highlights the application deadline on the site, and sends 
notices to QS and PQS holders near the end of the crab fishing year 
reminding them to apply for IFQ or IPQ for the next crab fishing year.
    Although the crab fishing year begins on July 1, the individual 
crab fisheries open at different times later in the crab fishing year. 
The first crab fishery to open is the Aleutian Islands golden king crab 
fishery and, until recently, this fishery was scheduled to open on 
August 15. In March 2014, the State of Alaska changed the opening date 
for the Aleutian Islands golden king crab fishery to August 1, 
effective with the 2015/2016 crab fishing year, to allow for fishing to 
occur slightly earlier in the summer months when it is safer for the 
fishers. The remaining crab fisheries open on October 15 or later in 
the crab fishing year.

The Actions

    Below are brief descriptions of the actions implemented by this 
final rule. For more detailed descriptions of the actions and the 
rationale for these actions, please see section 2.4 of the RIR/IRFA 
(see ADDRESSES) and the preamble of the proposed rule (79 FR 77427; 
December 24, 2014).
    The final rule makes several changes to regulations governing the 
acquisition, use, and retention of C share QS under the CR Program. The 
final rule temporarily expands the eligibility requirements regarding 
acquisition of C share QS by permitting the transfer of C share QS to 
an individual who is a U.S. citizen with at least 150 days of sea time 
as part of a harvesting crew in any U.S. commercial fishery and who 
either received an initial allocation of CVC or CPC QS or participated 
in at least one delivery of crab from a fishery in the CR program in 
three of the five crab fishing years prior to the start of the CR 
Program, starting with the 2000/2001 crab fishing year through the 
2004/2005 crab fishing year. The final rule does not remove the current 
eligibility criteria but adds to it the less restrictive eligibility 
criteria for a period of four years from the effective date of the 
final rule.
    In order to receive an annual allocation of C share IFQ, the final 
rule requires a C share QS holder to have either participated in at 
least one delivery in a CR Program fishery in the three crab fishing 
years preceding the crab fishing year for which the holder is applying 
for IFQ, or received an initial allocation of C shares and participated 
in 30 days of State of Alaska or Alaska federal commercial fisheries in 
the three crab fishing years preceding the crab fishing year for which 
the holder is applying for IFQ. The final rule also requires holders of 
C share QS to meet similar participation requirements over a span of 
four years in order to retain their C share QS.
    If a C share QS holder fails to satisfy the participation 
requirements and does not divest his or her C share QS, the final rule 
provides NMFS with the authority to revoke the C share QS. If a C share 
QS holder satisfies the participation requirements to receive C share 
IFQ, the holder also will satisfy the participation requirements for 
retention of C share QS.
    The final rule removes the current prohibition on leasing C share 
IFQ and C share QS holders will continue to be able to join 
cooperatives. However, all C share QS holders must meet the 
participation requirements in order to receive C share IFQ and retain C 
share QS; those who lease C share IFQ or join a cooperative are not 
exempt from the participation requirements. Finally, the final rule 
revises regulations governing the annual calculation of IFQ to ensure 
that 3 percent of the annual TAC for each crab fishery included in the 
CR Program is allocated as IFQ to holders of C share QS.
    These actions are necessary to fulfill the Council's intent that C 
share QS are held by individuals who are actively participating in the 
CR Program fisheries, to provide QS acquisition opportunities to 
captains and crew who may have been displaced from employment in the CR 
Program fisheries and were not initial recipients of QS, and to make C 
share QS available to captains and crew who are new entrants into the 
CR program fisheries.
    Additionally, this final rule implements a regulatory amendment 
adopted by the Council. The regulatory amendment makes three changes in 
the annual application process for IFQ, IPQ, and cooperative IFQ in the 
CR Program. Specifically, this final rule: (1) establishes June 15 as 
the deadline for filing annual IFQ, IPQ, and cooperative IFQ 
applications, which also increases the amount of time during which NMFS 
will suspend the processing of IFQ and IPQ transfer applications; (2) 
shortens the amount of time in which to appeal an initial 
administrative determination to withhold issuance of IFQ or IPQ from 60 
days to 30 days; and (3) provides in the regulations that an 
applicant's proof of timely filing an application for IFQ, IPQ, or 
cooperative IFQ creates a presumption of timely filing. These changes 
will provide NMFS with adequate time to resolve disputes prior to the 
issuance of IFQ and IPQ.
    Finally, to accommodate the State of Alaska's change to the season 
opening date for the Aleutian Islands golden king crab fishery, the 
final rule revises the reporting period for RCR Ex-vessel Volume and 
Value Reports, from August 15 through April 30 to August 1 through May 
31, and revises the date by which the RCR Ex-vessel Volume and Value 
Report must be received by the Regional Administrator, from May 15 to 
May 31. These changes align the reporting period with the new season 
opening date. The new reporting period will start with the 2015/2016 
crab fishing year and the first reports using the new reporting period 
will be due by May 31, 2016.

Comments and Responses

    NMFS received three letters of public comment during the public 
comment periods for Amendment 31 and the proposed rule. A summary of 
the

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comments received and NMFS' responses follow.
    Comment 1: We support the change of the IFQ/IPQ permit application 
date from August 1 to June 15. This change will reduce the potential 
for stranding crab because adjudicative proceedings involving IFQ or 
IPQ permit applications will likely be resolved by the time IFQ and IPQ 
are issued.
    Response: NMFS acknowledges this comment and agrees with the 
commenter that the potential for stranding crab will be reduced with 
the new application deadline.
    Comment 2: All quotas should be cut by 25 percent.
    Response: The purpose of Amendment 31 and the final rule is to 
modify the regulations governing the acquisition, use, and retention of 
C share QS and to modify the application process for IFQ and IPQ. The 
action is not intended to increase or decrease the amount of any type 
of QS originally issued under the CR Program or to modify the process 
or methods for establishing annual harvest specifications. The analysis 
developed for Amendment 31 and the regulatory amendment contains no 
information indicating that quota shares or harvest levels should be 
decreased, and therefore is outside the scope of this rulemaking.
    Comment 3: I oppose amending Bering Sea and Aleutian Islands Crab 
Rationalization Program to expand eligibility requirements. I believe 
in sustainability and this action is just more overfishing.
    Response: NMFS disagrees that the temporary expansion of 
eligibility requirements for acquiring C share QS will lead to 
unsustainability and overfishing of crab stocks. This action does not 
alter the TAC of any CR Program crab fishery or increase the amount of 
C share QS originally issued under the CR Program. Therefore, it does 
not increase any fishing. Instead, this action, which is more 
administrative in nature, provides an opportunity for those individuals 
who may have been forced out of the crab fisheries due to fleet 
contraction at the beginning of the CR Program to obtain C shares to 
fish crab again. This action also requires captains and crew to be 
active on a vessel, in order to maintain their QS, which achieves the 
Council's intent for holders of C shares to actively participate in 
fishing.

Changes From the Proposed Rule

    NMFS has made three changes from the proposed rule.
    One adds the phrase ``as crew'' to Sec.  
680.41(c)(1)(vii)(B)(2)(ii) to make the paragraph consistent with other 
paragraphs requiring participation as crew.
    The second change adds language to Sec.  680.40(g)(2)(i) and (ii) 
and Sec.  680.40(m)(2)(i) and (ii) that explains how NMFS will account 
for years in which a crab fishery is closed to fishing when determining 
whether an individual has satisfied the participation requirements for 
IFQ issuance and C share QS retention. NMFS received an inquiry, not 
formally submitted as a comment, regarding the participation 
requirements for individuals who hold C shares in a crab fishery that 
is closed, or in a crab fishery that closes in the future. NMFS 
recognizes that there are some individuals who hold C share QS in a 
single crab fishery and that some CR Program crab fisheries are closed 
to fishing periodically or for extended periods of time. It is neither 
the Council's nor NMFS' intent to penalize a C share QS holder for not 
participating when the only crab fishery for which the individual holds 
C share QS is closed to fishing. Therefore, the final rule clarifies 
that if an individual holds C share QS in a single CR Program crab 
fishery and that fishery is closed to fishing for an entire crab 
fishing year, NMFS will exclude that crab fishing year when determining 
whether the individual has satisfied the participation requirements for 
IFQ issuance and C share QS retention. NMFS emphasizes that the 
exclusion of years applies solely to those individuals who hold C share 
QS in just one CR Program crab fishery and that fishery is closed for 
an entire crab fishing year. NMFS will not exclude crab fishing years 
when an individual holds C share QS in more than one CR Program crab 
fishery, some of which may be closed for the entire crab fishing year 
and some of which may be open during that same year.
    The following examples illustrate this clarification. Individual A 
holds C share QS in the Pribilof Islands blue crab fishery only, while 
Individual B holds C share QS in the Pribilof Islands blue king crab 
fishery and the Bering Sea snow crab fishery. Following implementation 
of this final rule, the Pribilof Islands blue king crab fishery is 
closed for three fishing years but the Bering Sea snow crab fishery is 
open during these years. Because Individual A holds C share QS in a 
single CR Program crab fishery and that fishery is closed to fishing 
for the entire year, NMFS would exclude those three crab fishing years 
in which the Pribilof Islands blue king crab fishery is closed when 
determining whether Individual A has satisfied the participation 
requirements. However, NMFS would not exclude the crab fishing years in 
which the Pribilof Islands blue king crab fishery is closed when 
determining whether Individual B has satisfied the participation 
requirements because Individual B can participate in the Bering Sea 
snow crab fishery and satisfy the participation requirements.
    If the Pribilof Islands blue king crab fishery would open to 
fishing in the fourth crab fishing year but close again for the fifth 
and sixth fishing years, NMFS would include the fourth crab fishing 
year but exclude the fifth and sixth crab fishing years when 
determining whether Individual A has satisfied the participation 
requirements. Under this example, Individual A would only have one open 
fishing year that NMFS would use to determine participation. Because 
the participation requirements use three-year and four-year 
participation periods, NMFS would not have enough open fishing years to 
determine whether Individual A satisfied the participation requirements 
and NMFS would not withhold IFQ or initiate revocation proceedings 
until the required number of open fishing years have occurred and NMFS 
has determined that Individual A failed to satisfy the participation 
requirements. If the Pribilof Islands blue king crab fishery opens 
again in the seventh and eighth fishing years, NMFS would have enough 
open fishing years to determine whether Individual A has satisfied the 
participation requirements for issuance of C share IFQ for the ninth 
crab fishing year.
    The third change adds a limited exemption at Sec.  
680.40(g)(2)(iii) and Sec.  680.40(m)(5) to the participation 
requirements for IFQ issuance and C share QS retention for those 
individuals who acquire C share QS using the expanded eligibility 
criteria at Sec.  680.41(c)(1)(vii)(B). NMFS determined that the 
participation requirements established by this final rule will be 
immediately applicable to individuals who acquire C share QS using the 
expanded eligibility criteria at Sec.  680.41(c)(1)(vii)(B) but that 
those individuals may not be able to satisfy the participation 
requirements at the time of acquisition. By design, the expanded 
eligibility requirements do not require an eligible individual to have 
participated in a CR Program crab fishery in the 365 days prior to 
acquisition of the C share QS and create the possibility that an 
individual who is eligible to acquire C share QS under the expanded 
eligibility criteria would fail to satisfy the participation 
requirements for issuance of IFQ and retention of C

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share QS. Therefore, NMFS has included in the final rule a limited 
exemption to the participation requirements for individuals acquiring C 
share QS under the expanded eligibility criteria. The exemption would 
postpone the withholding of C share IFQ or revocation of C share QS 
until after these individuals had held the acquired C share QS for four 
full crab fishing years.

OMB Revisions to Paperwork Reduction Act References in 15 CFR 902.1(b)

    Section 3507(c)(B)(i) of the PRA requires that agencies inventory 
and display a current control number assigned by the Director, OMB, for 
each agency information collection. Section 902.1(b) identifies the 
location of NOAA regulations for which OMB approval numbers have been 
issued. Because this final rule revises and adds data elements within a 
collection-of-information for recordkeeping and reporting requirements, 
15 CFR 902.1(b) is revised to reference correctly the sections 
resulting from this final rule.

Classification

    The Administrator, Alaska Region, determined that Amendment 31 is 
necessary for the conservation and management of the Bering Sea/
Aleutian Island CR Program fisheries and that it is consistent with the 
Magnuson-Stevens Fishery Conservation and Management Act and other 
applicable laws.
    This final rule has been determined to be not significant for the 
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, 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 
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 (79 FR 77427; 
December 24, 2014) and the preamble to this final rule serve as the 
small entity compliance guide. This rule does not require any 
additional compliance from small entities that is not described in the 
preamble to the proposed rule (79 FR 77427; December 24, 2014) and this 
final rule. Copies of the proposed rule and this final rule are 
available from NMFS at the following Web site: https://alaskafisheries.noaa.gov.

Final Regulatory Flexibility Analysis (FRFA)

    The following paragraphs constitute the final regulatory 
flexibility analysis for this action. Section 604 of the Regulatory 
Flexibility Act requires an agency to prepare a FRFA after being 
required by that section or any other law to publish a general notice 
of proposed rulemaking and when an agency promulgates a final rule 
under section 553 of Title 5 of the U.S. Code.
    Section 604 describes the required contents of a FRFA: (1) A 
statement of the need for, and objectives of, the rule; (2) a statement 
of the significant issues raised by the public comments in response to 
the initial regulatory flexibility analysis, a statement 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) the 
response of the agency to any comments filed by the Chief Counsel for 
Advocacy of the Small Business Administration in response to the 
proposed rule, and a detailed statement of any change made to the 
proposed rule in the final rule as a result of the comments; (4) a 
description of 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; (5) 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 (6) 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.

Need for and Objectives of the Rule

    A description of the need for, and objectives of, the rule is 
contained in the preamble to this final rule and is not repeated here. 
This FRFA incorporates the Initial Regulatory Flexibility Analysis 
(IRFA) and the summary of the IRFA in the proposed rule (79 FR 77427, 
December 24, 2014).

Summary of Significant Issues Raised During Public Comment

    NMFS published a proposed rule to implement Amendment 31 on 
December 24, 2014 (79 FR 77427). An IRFA was prepared and summarized in 
the Classification section of the preamble to the proposed rule. The 
description of this action, its purpose, and its legal basis are 
described in the preamble to the proposed rule and are not repeated 
here.
    NMFS received three public comments on Amendment 31 and the 
proposed rule. No comments were received on the IRFA, or on the 
economic impacts of this action generally. The Chief Counsel for 
Advocacy of the Small Business Administration (SBA) did not file any 
comments on the proposed rule.

Number and Description of Small Entities Regulated by the Action

    The entities directly regulated by this action are individuals who 
currently hold C share QS, and individuals who were at one time active 
in the crab fisheries as captain and crew prior to the implementation 
of the CR Program but who are no longer active as captain or crew. The 
SBA has established size standards for all major industry sectors in 
the U.S., including commercial shellfish harvesters. On June 12, 2014, 
the Small Business Administration (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 new size standards were used 
to prepare the FRFA for this final rule. A business primarily involved 
in finfish harvesting is classified as a small business if it is 
independently owned and operated, is not dominant in its field of 
operation (including its affiliates), and has combined annual gross 
receipts not in excess of $20.5 million, for all its affiliated 
operations worldwide. For commercial shellfish harvesters, the same 
qualifiers apply, except the combined annual gross receipts threshold 
is $5.5 million.
    One hundred and seventy-nine individuals currently hold C shares. 
Of these individuals, 70 are estimated to have been part of the 239 
individuals who received an initial allocation of C shares based on 
their historical participation record. About 750 individuals, who were 
active in the crab fisheries as captain and crew prior to the 
implementation of the CR Program, are no longer active as captain or 
crew; the final rule allows those 750 individuals to acquire C shares 
by transfer for a period of four years. Thus,

[[Page 15895]]

approximately 1100 individuals (750 who were active prior to 
rationalization, 239 who were initial recipients, and 109 who have 
since acquired C shares) would be impacted by the change in the 
regulations regarding the eligible individuals who would be able to 
acquire C shares by transfer in this rule. Based on the SBA's size 
standard, the Council and NMFS believe that all holders of C shares are 
small entities for purposes of the RFA.
    The final rule also makes several regulatory amendments that are 
not contained in Amendment 31 to the FMP. These amendments directly 
regulate holders of QS, PQS and cooperatives formed under the CR 
Program. Each of the cooperatives in the CR Program includes as few as 
several to as many as several hundred of QS holders as members and has 
revenues in excess of the small entity threshold; however, during the 
2010-2011 fishing season, 64 QS holders elected not to join 
cooperatives. These 64 QS holders are all small entities for RFA 
purposes.
    Entities holding PQS with fewer than 500 employees are ``small 
entities'' according to the RFA. As of 2011, 21 entities hold PQS. Of 
these 21 entities, 10 are large entities and 11 are small entities for 
RFA purposes.

Recordkeeping, Reporting, and Compliance Requirements

    The final rule makes several changes to recordkeeping and reporting 
requirements for C share QS holders, as well as those wishing to 
acquire C shares. Entities wishing to acquire C shares that are 
currently ineligible, because of they are not currently participating 
as captains or crew, but that will be eligible, because of past 
participation, will be required to submit evidence of past 
participation in the form of fish tickets or affidavits. Entities 
holding C share QS will also be required to submit verification of 
their compliance with participation standards necessary for the 
receiving C share IFQ and to maintain their C share QS holdings. Since 
C share QS holders must meet participation standards to receive annual 
IFQ allocations and retain C share QS, the reporting requirements are 
structured to determine compliance with those standards.

Description of Significant Alternatives to the Final Action That 
Minimize Adverse Impacts on Small Entities

    A FRFA must describe the steps the agency has taken to minimize the 
significant economic impact on small entities consistent with the 
stated objectives of applicable statues, 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 that affect the 
impact on small entities was rejected. ``Significant alternatives'' are 
those that achieve the stated objectives for the action, consistent 
with prevailing law with potentially lesser adverse economic impacts on 
small entities, as a whole.
    Three alternatives, including the no action alternative, were 
considered to relax the eligibility requirements for the acquisition of 
C shares by transfer. The first alternative creates eligibility for 
entities that received an initial allocation of C shares. The second 
alternative creates eligibility for entities with historical 
participation in the CR Program fisheries. The Council decided to 
select both of the action alternatives to fully expand the eligibility 
to include all those entities who had historically participated in the 
crab fisheries prior to rationalization. The Council did not consider 
further expanding the eligibility to include entities that do not have 
any type of historical participation in the crab fisheries, because the 
original intent in establishing C shares was to provide an opportunity 
for entities with a connection to the crab fisheries, through 
participation, to own shares.
    The final rule contains a provision that no C shares would be 
revoked until 5 years after implementation of the amendment to the FMP. 
The Council intended that this provision would mitigate negative 
effects on individuals whose shares may be revoked by this action. The 
Council and NMFS considered two other options to delay revocations. 
Under the first, no revocations would have taken place until 5 years 
after implementation of the CR Program, which would have been the year 
2010. The second option extended the period to 10 years after 
implementation of the CR Program, which would have been the year 2015. 
The preferred alternative would begin revocations 5 years after this 
final rule is effective. This alternative was selected because it 
provides holders of C shares with certainty about the rules that will 
govern C shares and with time to consider business plans for their C 
shares. The preferred alternatives give holders of C shares time to 
plan whether to meet the new active participation requirements and 
retain their C shares or whether to divest their share holdings.
    For the provision requiring active participation to receive annual 
IFQ from C shares, the final rule requires active participation over a 
3-year period. For the provision requiring active participation 
requirement to retain C shares, the final rule requires active 
participation over a 4-year period. Three categories of alternatives 
were considered for these provisions: the status quo alternative, which 
essentially had no active participation requirement because holders of 
C shares can and do assign their shares to cooperatives; alternatives 
that would require less or no active participation in the fisheries to 
maintain C share holdings; and alternatives that would require greater 
levels of participation as crew.
    The Council concluded, and NMFS agrees, that the status quo and the 
alternatives that require less participation to maintain C share 
holdings are inconsistent with the Council's intent to ensure that C 
shares are held by individuals who are active in the fisheries and to 
create a pool of C shares for use exclusively by individuals who are 
active in the fisheries. The Council examined alternatives that 
required higher levels of participation to maintain C share holdings or 
that required participation exclusively in CR Program fisheries. The 
Council concluded, and NMFS agrees that these alternatives unduly 
constrained holders of C shares, given the fleet consolidation and 
other changes in crab fishing under the CR Program. With fewer vessels 
active in the fisheries, greater competition for crew jobs is an 
obstacle to maintaining active participation in the CR Program 
fisheries. By allowing individuals to meet a minimal landing 
requirement to maintain their active participation status and by 
allowing individuals who are initial recipients of C shares to meet the 
active participation requirements through fishing in non-crab 
commercial fisheries in Alaska, the preferred alternative would allow 
individuals to miss some seasons, when crew jobs may be difficult to 
secure. The Council concluded and NMFS agrees that the preferred 
alternative reaches a reasonable balance between alternatives that 
would allow extended absences from active participation in the 
fisheries and alternatives that would require greater participation in 
the CR Program fisheries, an approach which fails to recognize the 
nature of the market for employment in the CR Program fisheries.
    The Council did not consider an alternative to the regulatory 
mechanism to ensure three percent of the TAC for each CR Program 
fishery is allocated to holders of C share QS. Under the current 
regulations, approximately three

[[Page 15896]]

percent of the IFQ pool is allocated as C share IFQ and 97 percent is 
allocated as owner share IFQ, as is required by the CR Program. 
However, with the new active participation provisions, and the 
potential for IFQ not to be allocated to entities which do not meet 
these provisions, there is a possibility that the C share IFQ 
allocation would be reduced. To ensure that the C share IFQ pool 
remains at its intended levels, the Council requested a mechanism put 
in place to maintain the C share IFQ pool at three percent of the IFQ 
pool, regardless of whether some holders of C share receive their 
annual IFQ allocation.

Duplicate, Overlapping, or Conflicting Federal Rules

    No duplication, overlap, or conflict between this action and 
existing Federal rules has been identified.

Collection-of-Information Requirements

    This final rule contains collection-of-information requirements 
subject to the Paperwork Reduction Act (PRA), which have been approved 
by the Office of Management and Budget (OMB). Collections are presented 
below by OMB control number.

OMB Control No. 0648-0514

    Public reporting burden per response is estimated to average 2 
hours for the Application for BSAI Crab Eligibility to Receive QS/PQS 
or IFQ/IPQ by Transfer; 2.5 hours for Application for Annual Crab 
Permit IFQ; 2.5 hours for Application for Annual Crab Permit IPQ; 30 
minutes for Application for Converted CPO QS and CPO IFQ; 2.5 hours for 
Application for Crab Harvesting Cooperative IFQ Permit; 4 hours for 
Appeal for Denial of Application; 2.5 hours for Application for 
Transfer of Crab IFQ; 2.5 hours for Application for Transfer of Crab 
IPQ permit; and 2 hours for Application for Transfer of Crab QS or PQS.

OMB Control No. 0648-0570

    Public reporting burden per response is estimated to average 2 
hours for the CR Program Registered Crab Receiver Ex-vessel Volume and 
Value Report.
    Burden estimates include the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection information.
    Send comments regarding these burden estimates, or any other 
aspects of the information collections, to NMFS (see ADDRESSES) and by 
email to OIRA_Submission@omb.eop.gov or fax to 202-395-5806.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to penalty for 
failure to comply with, a collection of information subject to the 
requirement of the PRA, unless that collection of information displays 
a currently valid OMB control number. All currently approved NOAA 
collections of information may be viewed at: https://www.cio.noaa.gov/services_programs/prasubs.html.

List of Subjects

15 CFR Part 902

    Reporting and recordkeeping requirements.

50 CFR Part 680

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: March 17, 2015.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, NMFS amends 15 CFR part 
902 and 50 CFR part 680 as follows:

Title 15--Commerce and Foreign Trade

PART 902--NOAA INFORMATION COLLECTION REQUIREMENTS UNDER THE 
PAPERWORK REDUCTION ACT: OMB CONTROL NUMBERS

0
1. The authority citation for part 902 continues to read as follows:

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


0
2. In Sec.  902.1, in the table in paragraph (b), under the entry ``50 
CFR'':
0
a. Remove the entry for ``680.4(a) through (p)''
0
b. Add an entry in alphanumeric order for ``680.4(a) through (q)''; and
0
c. Revise entries for ``680.5(a) and (h) through (l)''; ``680.5(f)''; 
`680.5(g)''; and ``680.5(m)''.
    The additions and revisions read as follows:


Sec.  902.1  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

* * * * *
    (b) * * *

------------------------------------------------------------------------
                                                            Current OMB
                                                          control number
  CFR part or section where the information collection     (all numbers
                 requirement is located                     begin with
                                                              0648-)
------------------------------------------------------------------------
 
                                * * * * *
50 CFR:
 
                                * * * * *
  680.4(a) through (q)..................................           -0514
  680.5(a) and (h) through (l)..........................           -0514
 
                                * * * * *
  680.5(f)..............................................           -0514
  680.5(g)..............................................           -0570
  680.5(m)..............................................           -0570
 
                                * * * * *
------------------------------------------------------------------------

Title 50--Wildlife and Fisheries

PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF 
ALASKA

0
3. The authority citation for part 680 continues to read as follows:

    Authority:  16 U.S.C. 1862; Pub. L. 109-241; Pub. L. 109-479.


0
4. In Sec.  680.4, revise paragraphs (f)(1) and (n)(1)(i), and add 
paragraph (q) to read as follows:


Sec.  680.4  Permits.

* * * * *
    (f) * * *
    (1) A complete application must be received by NMFS no later than 
June 15 (or postmarked by this date, if sent via U.S. mail or a 
commercial carrier) for the upcoming crab fishing year for which a 
person is applying to receive IFQ or IPQ. If a complete application is 
not received by NMFS by this date, or postmarked by this date, the 
person will not receive IFQ or IPQ for the upcoming crab fishing year. 
In the event that NMFS has not received a complete and timely 
application by June 15, NMFS will presume that the application was 
timely filed if the applicant can provide NMFS with proof of timely 
filing.
* * * * *
    (n) * * *
    (1)(i) A complete application must be received by NMFS no later 
than June 15 (or postmarked by this date, if sent via U.S. mail or a 
commercial carrier) for the upcoming crab fishing year for which a 
person or crab harvesting cooperative is applying to receive converted 
CPO QS and the IFQ derived from that converted CPO QS. If a complete 
application is not received by NMFS by this date, or postmarked by this 
date, the person or crab harvesting cooperative will not receive 
converted CPO QS and the IFQ derived from that converted CPO QS for the 
upcoming crab fishing year. In the event that NMFS has not received a 
complete and timely application by June 15, NMFS will presume that the 
application was

[[Page 15897]]

timely filed if the applicant can provide NMFS with proof of timely 
filing.
* * * * *
    (q) Initial administrative determination (IAD). The Regional 
Administrator will prepare and send an IAD to the applicant following 
the expiration of the 30-day evidentiary period if the Regional 
Administrator determines that the information or evidence provided by 
the applicant fails to support the applicant's claims and is 
insufficient to establish that the applicant meets the requirements, or 
if the additional information, evidence, or revised application is not 
provided within the time period specified in the letter that notifies 
the applicant of his or her 30-day evidentiary period. The IAD will 
indicate the deficiencies in the application, including any 
deficiencies with the information, the evidence submitted in support of 
the information, or the revised application. The IAD will also indicate 
which claims cannot be approved based on the available information or 
evidence. An applicant who receives an IAD may appeal under the appeals 
procedures set forth at 15 CFR part 906. If an applicant appeals an IAD 
denying an Application for Annual Crab IFQ, IPQ, or harvesting 
Cooperative IFQ Permit because the application was not timely filed, 
the appeal must be filed within 30 days after the date the IAD is 
issued. An applicant who avails himself or herself of the opportunity 
to appeal an IAD will not receive crab IFQ or IPQ until after the final 
resolution of that appeal in the applicant's favor.

0
5. In Sec.  680.5, revise paragraphs (m)(2) and (3) to read as follows:


Sec.  680.5  Recordkeeping and reporting (R&R).

* * * * *
    (m) * * *
    (2) Reporting period. The reporting period of the CR RCR Ex-vessel 
Volume and Value Report shall extend from August 1 through May 31 of 
the following year, inclusive.
    (3) Due date. A complete CR RCR Ex-vessel Volume and Value Report 
must be received by the Regional Administrator no later than May 31 of 
the reporting period in which the RCR received CR crab.
* * * * *

0
6. In Sec.  680.21, revise paragraphs (b)(1), (b)(2) introductory text, 
and (d)(1) to read as follows:


Sec.  680.21  Crab harvesting cooperatives.

* * * * *
    (b) * * *
    (1) June 15 application deadline. A complete application must be 
received together with a signed annual application for crab IFQ/IPQ 
permit forms of all members of the crab harvesting cooperative, by NMFS 
no later than June 15 (or postmarked by this date, if sent via U.S. 
mail or a commercial carrier) for the upcoming crab fishing year for 
which the crab harvesting cooperative is applying to receive IFQ. If a 
complete application is not received by NMFS by this date, or 
postmarked by this date, the crab harvesting cooperative will not 
receive IFQ for the upcoming crab fishing year. In the event that NMFS 
has not received a complete and timely application by June 15, NMFS 
will presume that the application was timely filed if the applicant can 
provide NMFS with proof of timely filing.
    (2) Contents. A complete application must contain the following 
information:
* * * * *
    (d) * * *
    (1) Transfer of QS. A member of a crab harvesting cooperative may 
acquire or divest QS at any time in accordance with the transfer 
procedures in Sec.  680.41. However, transfers of QS that occur after 
the June 15 deadline for crab harvesting cooperative IFQ permit 
applications will not be reflected in the type or amount of IFQ permit 
issued to the crab harvesting cooperative for that crab fishing year.
* * * * *

0
7. In Sec.  680.40:
0
a. Revise paragraphs (g) and (h)(1); and
0
b. Add paragraph (m) to read as follows:


Sec.  680.40  Crab Quota Share (QS), Processor QS (PQS), Individual 
Fishing Quota (IFQ), and Individual Processor Quota (IPQ) Issuance.

* * * * *
    (g) Annual allocation of IFQ--(1) General. IFQ is assigned based on 
the underlying QS. Except for CVC and CPC QS permit holders who fail to 
meet the participation requirements at paragraph (g)(2) of this 
section, the Regional Administrator shall assign crab IFQs to each 
person who holds QS and submits a complete annual application for crab 
IFQ/IPQ permit as described under Sec.  680.4. IFQ will be assigned to 
a crab QS fishery with the appropriate regional designation, QS sector, 
and IFQ class. This amount will represent the maximum amount of crab 
that may be harvested from the specified crab QS fishery by the person 
to whom it is assigned during the specified crab fishing year, unless 
the IFQ assignment is changed by the Regional Administrator because of 
an approved transfer, revoked, suspended, or modified under 15 CFR part 
904.
    (2) Eligibility for CVC and CPC IFQ. For each crab fishing year 
after June 30, 2018, individuals holding CVC or CPC QS permits must 
meet the participation requirements set forth in paragraphs (g)(2)(i) 
or (g)(2)(ii) of this section in order to receive CVC or CPC IFQ unless 
the CVC or CPC QS permit holder meets the exemption provided in 
paragraph (g)(2)(iii) of this section.
    (i) The individual has participated as crew in at least one 
delivery of crab in any CR crab fishery during the three crab fishing 
years preceding the crab fishing year for which the individual is 
filing an annual crab IFQ permit application. If the individual holds C 
share QS in a single CR crab fishery and that CR crab fishery is closed 
to fishing for an entire crab fishing year, NMFS will exclude that crab 
fishing year when determining whether the individual has satisfied this 
participation requirement.
    (ii) The individual was an initial recipient of CVC or CPC QS and 
participated as crew in at least 30 days of fishing in a commercial 
fishery managed by the State of Alaska or in a U.S. commercial fishery 
in the U.S. Exclusive Economic Zone off Alaska during the three crab 
fishing years preceding the crab fishing year for which the individual 
is filing an annual crab IFQ permit application. Individuals may 
combine participation as crew in State and Federal commercial fisheries 
to meet this requirement. If the individual holds C share QS in a 
single CR crab fishery and that CR crab fishery is closed to fishing 
for an entire crab fishing year, NMFS will exclude that crab fishing 
year when determining whether the individual has satisfied this 
participation requirement.
    (iii) All of the CVC or CPC QS permits held by the individual were 
acquired using the eligibility criteria in 50 CFR 680.41(c)(1)(vii)(B) 
and the individual has held those CVC or CPC QS permits for less than 
three full crab fishing years.
    (3) Withholding of CVC or CPC IFQ. Beginning July 1, 2018, the 
Regional Administrator will withhold issuance of CVC or CPC IFQ to an 
individual who has not met the participation requirements set forth in 
paragraph (g)(2) of this section. The Regional Administrator will 
withhold an individual's CVC IFQ or CPC IFQ in accordance with the 
procedures set forth in paragraphs (g)(3)(i) and (ii) of this section.
    (i) Notice of C Share IFQ Withholding. The Regional Administrator 
will issue a Notice of C Share IFQ Withholding to an individual holding 
CVC or CPC QS if,

[[Page 15898]]

after reviewing the CVC or CPC QS holder's Application for Annual Crab 
IFQ Permit, the Regional Administrator determines that the CVC or CPC 
QS holder has failed to meet the participation requirements in 
paragraph (g)(2) of this section. A CVC or CPC QS holder who receives a 
Notice of C Share IFQ Withholding will have 30 days to provide the 
Regional Administrator with information demonstrating participation as 
crew that meets the requirements of paragraph (g)(2) of this section.
    (ii) Initial administrative determination (IAD). The Regional 
Administrator will prepare and send an IAD to the CVC or CPC QS holder 
following the expiration of the 30-day evidentiary period if the 
Regional Administrator determines that the information or evidence 
provided by the CVC or CPC QS holder fails to demonstrate participation 
as crew and is insufficient to rebut the information included in the 
CVC or CPC QS holder's Applications for Annual Crab IFQ Permit, or if 
the additional information or evidence is not provided within the time 
period specified in the Notice of C Share IFQ Withholding. The IAD will 
explain the basis for the withholding of IFQ. A CVC or CPC QS holder 
who receives an IAD withholding IFQ may appeal under the appeals 
procedures set forth at 15 CFR part 906. A CVC or CPC QS holder who 
avails himself or herself of the opportunity to appeal an IAD 
withholding IFQ will not receive crab IFQ until after the final 
resolution of that appeal in the QS holder's favor.
    (h) * * *
    (1) General. (i) The annual allocation of IFQ to any person (p) in 
any crab QS fishery (f) will be based on the TAC of crab for that crab 
QS fishery less the allocation to the Western Alaska CDQ Program (``CDQ 
Reserve'') and Western Aleutian Islands golden king crab fishery. 
Expressed algebraically, the annual IFQ allocation formula is as 
follows:
    (A) IFQ TACf = TACf - (CDQ 
Reservef + Allocation for the Western Aleutian Island golden 
king crab fishery)
    (B) IFQpf = IFQ TACf x (QSpf/QS 
poolf)
    (ii) CVO, CPO, CVC, and CPC IFQ. Each year, 3 percent of the IFQ 
TACf will be allocated as CVC IFQ or CPC IFQ and 97 percent 
of the IFQ TACf will be allocated as CVO IFQ or CPO IFQ. 
Expressed algebraically, the formulas for the annual IFQ allocations 
are as follows:
    (A) CVC/CPC IFQf = IFQ TACf x 0.03
    (B) CVO/CPO IFQf = IFQ TACf x 0.97
* * * * *
    (m) Participation requirements for retention of CVC QS and CPC QS. 
(1) Beginning July 1, 2019, and each crab fishing year thereafter, 
individuals allocated CVC QS or CPC QS must meet the participation 
requirements set forth in paragraphs (m)(2)(i) or (m)(2)(ii) of this 
section in order to retain their CVC QS or CPC QS unless the CVC or CPC 
QS holder meets the exemption provided in paragraph (m)(5) of this 
section.
    (2)(i) The individual has participated as crew in at least one 
delivery of crab in any CR crab fishery during the previous four 
consecutive crab fishing years. If the individual holds C share QS in a 
single CR crab fishery and that CR crab fishery is closed to fishing 
for an entire crab fishing year, NMFS will exclude that crab fishing 
year when determining whether the individual has satisfied this 
participation requirement.
    (ii) The individual was an initial recipient of CVC QS or CPC QS 
and participated as crew in at least 30 days of fishing in a commercial 
fishery managed by the State of Alaska or in a U.S. commercial fishery 
in the U.S. Exclusive Economic Zone off Alaska during the previous four 
consecutive crab fishing years. Individuals may combine participation 
as crew in State and Federal commercial fisheries to meet this 
requirement. If the individual holds C share QS in a single CR crab 
fishery and that CR crab fishery is closed to fishing for an entire 
crab fishing year, NMFS will exclude that crab fishing year when 
determining whether the individual has satisfied this participation 
requirement.
    (3) An individual issued a CVC QS or CPC QS permit may include 
information demonstrating compliance with the participation 
requirements in paragraph (m)(2) of this section with the individual's 
annual Application for Crab IFQ.
    (4) If an individual issued a CVC QS or CPC QS permit fails to meet 
the participation requirements in paragraph (m)(2) of this section or 
fails to qualify for the exemption in paragraph (m)(5) of this section, 
NMFS will revoke all of the individual's CVC QS or CPC QS in accordance 
with Sec.  680.43.
    (5) All of the CVC or CPC QS permits held by the individual were 
acquired using the eligibility criteria in Sec.  680.41(c)(1)(vii)(B) 
and the individual has held those CVC or CPC QS permits for less than 
four full crab fishing years.

0
8. In Sec.  680.41, revise paragraphs (b)(1), (c)(1)(vii) and (viii), 
(c)(2)(ii)(C), and (e)(3) to read as follows:


Sec.  680.41  Transfer of QS, PQS, IFQ and IPQ.

* * * * *
    (b) * * *
    (1) Application. An application is required to transfer any amount 
of QS, PQS, IFQ, or IPQ. A transfer application will not be approved 
until the necessary eligibility application has been submitted and 
approved by NMFS in accordance with paragraph (c) of this section. The 
Regional Administrator will not approve any transfers of QS, PQS, IFQ, 
or IPQ in any crab QS fishery from June 15 until either the date of the 
issuance of IFQ or IPQ for that crab QS fishery, or the date on which 
the State of Alaska announces that a crab QS fishery will not open for 
that crab fishing year.
* * * * *
    (c) * * *
    (1) * * *

------------------------------------------------------------------------
                                                        Eligibility
          Quota type             Eligible person        requirements
------------------------------------------------------------------------
 
                              * * * * * * *
(vii) CVC or CPC QS...........  An individual....  (A) Who is a U.S.
                                                    citizen with:
                                                      (1) At least 150
                                                       days of sea time
                                                       as part of a
                                                       harvesting crew
                                                       in any U.S.
                                                       commercial
                                                       fishery, and
                                                      (2) Recent
                                                       participation as
                                                       crew in at least
                                                       one delivery of
                                                       crab in a CR crab
                                                       fishery in the
                                                       365 days prior to
                                                       submission of the
                                                       application for
                                                       eligibility,
                                                   (B) From May 1, 2015,
                                                    until May 1, 2019,
                                                    CVC or CPC QS also
                                                    may be transferred
                                                    to an individual who
                                                    is a U.S. citizen
                                                    with:
                                                      (1) At least 150
                                                       days of sea time
                                                       as part of a
                                                       harvesting crew
                                                       in any U.S.
                                                       commercial
                                                       fishery, and
                                                      (2) Who either:
                                                        (i) Received an
                                                         initial
                                                         allocation of
                                                         CVC or CPC QS;
                                                         or

[[Page 15899]]

 
                                                        (ii)
                                                         Participated as
                                                         crew in at
                                                         least one
                                                         delivery of
                                                         crab in a CR
                                                         crab fishery in
                                                         any 3 of the 5
                                                         crab fishing
                                                         years starting
                                                         on July 1,
                                                         2000, through
                                                         June 30, 2005.
(viii) CVC or CPC IFQ.........  All eligible       According to the
                                 individuals for    requirements in
                                 CVC or CPC QS.     paragraph
                                                    (c)(1)(vii) of this
                                                    section.
------------------------------------------------------------------------

    (2) * * *
    (ii) * * *
    (C) Eligibility for CVC or CPC QS/IFQ. Indicate (YES or NO) whether 
this application is intended for a person who wishes to buy CVC or CPC 
QS/IFQ. If YES, provide evidence demonstrating that the applicant meets 
the criteria set forth in paragraph (c)(1)(vii) of this section. 
Acceptable evidence is limited to an ADF&G fish ticket imprinted with 
the applicant's State of Alaska permit card and signed by the 
applicant, an affidavit from the vessel owner, or a signed receipt for 
an IFQ crab landing on which the applicant was acting as the permit 
holder's crab IFQ hired master.
* * * * *
    (e) * * *
    (3) IFQ derived from CVC QS or CPC QS. IFQ derived from CVC or CPC 
QS may be transferred by lease on an annual basis.
* * * * *

0
9. Revise Sec.  680.43 to read as follows:


Sec.  680.43  Revocation of CVC and CPC QS.

    (a) Beginning July 1, 2019, the Regional Administrator will revoke 
all CVC QS and CPC QS held by an individual who has not met the 
participation requirements set forth in Sec.  680.40(m). The Regional 
Administrator will revoke an individual's CVC QS or CPC QS in 
accordance with the procedures set forth in this section.
    (b) Notice of C Share QS Inactivity. The Regional Administrator 
will issue a Notice of C Share QS Inactivity to an individual holding 
CVC or CPC QS if, after reviewing the CVC or CPC QS holder's 
Applications for Annual Crab IFQ Permit, the Regional Administrator 
determines that the CVC or CPC QS holder has failed to meet the 
participation requirements in Sec.  680.40(m). A CVC or CPC QS holder 
who receives such a Notice will have 60 days to provide the Regional 
Administrator with information demonstrating participation as crew that 
meets the requirements of Sec.  680.40(m).
    (c) Initial administrative determination (IAD). The Regional 
Administrator will prepare and send an IAD to the CVC or CPC QS holder 
following the expiration of the 60-day evidentiary period if the 
Regional Administrator determines that the information or evidence 
provided by the CVC or CPC QS holder fails to demonstrate participation 
as crew and is insufficient to rebut the information included in the 
CVC or CPC QS holder's Applications for Annual Crab IFQ Permit, or if 
the additional information or evidence is not provided within the time 
period specified in the Notice of C Share QS Inactivity. The IAD will 
explain the basis for the revocation determination. A CVC or CPC QS 
holder who receives an IAD for revocation may appeal under the appeals 
procedures set forth at 15 CFR part 906. A CVC or CPC QS holder who 
avails himself or herself of the opportunity to appeal an IAD for 
revocation will not receive crab IFQ or IPQ until after the final 
resolution of that appeal in the QS holder's favor.

[FR Doc. 2015-06928 Filed 3-25-15; 8:45 am]
 BILLING CODE 3510-22-P