Magnuson-Stevens Act Provisions; Refinance of the Pacific Coast Groundfish Fishing Capacity Reduction Loan; Pacific Coast Groundfish Federal Limited-Entry Trawl, Washington Coastal Dungeness Crab and California Pink Shrimp Fisheries; Refinanced Reduction Loan Terms and Industry Fee System, 46941-46946 [2015-19261]
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46941
Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules
3. On page 39595, in Table 20, add a
new entry for the northern bottlenose
whale to read as follows:
TABLE 20—SUMMARY INFORMATION RELATED TO PROPOSED ANNUAL TAKE AUTHORIZATION IN THE ATLANTIC COAST
REGION, 2015–2020
Proposed total
annual Level B
harassment
authorization
Species 1
*
*
Harbor seal ...........................................
*
20,000
*
2.48
*
n/a
*
10
7 1,678;
Estimated
maximum
annual
M/SI +
Level A 2
Proposed total
M/SI + Level A
authorization,
2015–2020
Percent of
estimated
population
*
15
PBR 3
%
PBR 4
*
3.6
Stock
trend 5
*
1,662
0.22
n/a
................
*
*
Northern bottlenose whale ....................
*
*
Unidentified delphinids.
*
*
*
*
*
*
*
*
*
*
*
*
*
*
?
0
0
*
?
*
*
*
*
*
*
*
species with multiple stocks in the Atlantic coast regions or for species groups (Kogia spp. and Mesoplodont beaked whales), indicated
level of take could occur to individuals from any stock or species (not including coastal and estuarine stocks of bottlenose dolphins).
2 This column represents the total number of incidents of M/SI + Level A that could potentially accrue to the specified species or stock and is
the number carried forward for evaluation in the negligible impact analysis (later in this document). To reach this total, we add one to the total for
each pinniped or delphinid that may be captured in longline or gillnet gear, one to the total for each delphinid that may be captured in trawl gear,
and one pinniped that may be captured in fyke net gear. This represents the potential that the take of an unidentified pinniped or delphinid could
accrue to any given stock captured in that gear. The proposed take authorization is formulated as a five-year total; the annual average is used
only for purposes of negligible impact analysis. We recognize that portions of an animal may not be taken in a given year.
3 See Table 3 and following discussion for more detail regarding PBR.
4 Estimated maximum annual M/SI + Level A expressed as a percentage of PBR.
5 See relevant SARs for more information regarding stock status and trends. Interannual increases may not be interpreted as evidence of a
trend.
*
*
*
*
*
*
*
7 The first number represents estimated annual Level B take by acoustic sources. The second number represents estimated annual Level B
take by the physical disturbance during surveys in Penobscot Bay.
1 For
List of Subjects in 50 CFR Part 219
§ 219.33
Exports, Fish, Imports, Indians,
Labeling, Marine mammals, Penalties,
Reporting and recordkeeping
requirements, Seafood, Transportation.
Accordingly, 50 CFR part 219 is
corrected as follows:
*
PART 219—REGULATIONS
GOVERNING THE TAKING AND
IMPORTING OF MARINE MAMMALS
Subpart D—Taking Marine Mammals
Incidental to Northeast Fisheries
Science Center Fisheries Research in
the Atlantic Coast Region
1. The authority citation for part 219
continues to read as follows:
■
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Authority: 16 U.S.C. 1361 et seq.
2. In § 219.33:
A. Revise paragraph (b)(1)(i)(H).
B. Revise paragraph (b)(1)(i)(K).
C. Add paragraph (b)(1)(i)(Z).
D. Revise paragraph (b)(1)(ii)(A).
E. Revise paragraph (b)(1)(ii)(C).
F. Revise paragraphs (b)(2)(ii)(A) and
(b)(2)(ii)(B).
■ G. Revise paragraph (b)(4)(ii)(A).
The revisions and addition are set out
below:
■
■
■
■
■
■
■
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Permissible methods of taking.
*
*
*
*
(b) * * *
(1) * * *
(i) * * *
(H) Pygmy or dwarf sperm whale
(Kogia spp.)—24;
*
*
*
*
*
(K) Bottlenose dolphin (Tursiops
truncatus)—1,294;
*
*
*
*
*
(Z) Northern bottlenose whale
(Hyperoodon ampullatus)—10;
*
*
*
*
*
(ii) * * *
(A) Gray seal (Halichoerus grypus)—
8,010;
*
*
*
*
*
(C) Harbor seal (Phoca vitulina)—
21,678.
*
*
*
*
*
(2) * * *
(ii) * * *
(A) Gray seal—5;
(B) Harbor seal—5;
*
*
*
*
*
(4) * * *
(ii) * * *
(A) Gray seal—5;
*
*
*
*
*
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Dated: July 29, 2015.
Samuel D. Rauch III,
Deputy Assistant Administrator for
Regulatory Programs, National Marine
Fisheries Service.
[FR Doc. 2015–19310 Filed 8–5–15; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 600
[Docket No. 150227192–5192–01]
RIN 0648–BE90
Magnuson-Stevens Act Provisions;
Refinance of the Pacific Coast
Groundfish Fishing Capacity
Reduction Loan; Pacific Coast
Groundfish Federal Limited-Entry
Trawl, Washington Coastal Dungeness
Crab and California Pink Shrimp
Fisheries; Refinanced Reduction Loan
Terms and Industry Fee System
National Marine Fisheries
Service (NMFS), National Oceanic and
AGENCY:
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Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules
Atmospheric Administration (NOAA),
Commerce.
ACTION: Proposed rule; request for
comments.
NMFS is proposing
regulations that would refinance the 30year voluntary fishing capacity
reduction loan implemented in 2004
into three separate loans, if approved
through referenda, in the Pacific Coast
Groundfish federal limited-entry trawl,
Washington coastal Dungeness crab, and
California pink shrimp fisheries
(collectively known hereafter as the
refinanced reduction fisheries). The
refinanced loan, of up to $30 million,
would establish a new industry fee
system for future landings of the
refinanced reduction fisheries. The 2015
National Defense Authorization Act
authorized NMFS to refinance the loan
and modify certain terms to extend the
30 year term to maturity to 45 years,
change the interest rate to the current
Treasury interest rate and, reduce the
maximum repayment fee from five to
three percent of ex-vessel value. If
finalized, and with the receipt of an
appropriation, NMFS proposes to
refinance the single existing debt, which
has been divided into seven loan
subamounts, into three separate loans.
NMFS would conduct three referenda as
soon as practicable after publication of
the final rule in each of the Pacific Coast
Groundfish federal limited-entry trawl,
Washington coastal Dungeness crab and
California pink shrimp fisheries. If a
referendum in one, two, or all three of
the fisheries is successful, that fishery’s
current loan would be repaid in full and
new loans in the amount of the
principal and interest balance as of the
date of funding would be issued per the
terms in the 2015 National Defense
Authorization Act. These terms include
a new 45-year term to maturity, interest
charged at a current Treasury interest
rate, and a maximum repayment fee of
3 percent of ex-vessel value.
DATES: NMFS must receive comments
by September 8, 2015.
ADDRESSES: You may submit comments
on this document, identified by NOAA–
NMFS–2015–0033, by either of the
following methods:
Electronic Submission: Submit all
electronic public comments via the
Federal e-Rulemaking Portal.
1. Go to www.regulations.gov/
#!docketDetail;D=NOAA-NMFS-20150033,
2. Click the ‘‘Comment Now!’’ icon,
complete the required fields
3. Enter or attach your comments.
—OR—
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SUMMARY:
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Mail: Submit written comments to
Paul Marx, Chief, Financial Services
Division, National Marine Fisheries
Service, 1315 East-West Highway, Silver
Spring, MD 20910–3282.
Instructions: Comments sent by any
other method, to any other address or
individual, or received after the end of
the comment period, may not be
considered by NMFS. All comments
received are a part of the public record
and will generally be posted for public
viewing on www.regulations.gov
without change. All personal identifying
information (e.g., name, address, etc.),
confidential business information, or
otherwise sensitive information
submitted voluntarily by the sender will
be publicly accessible. NMFS will
accept anonymous comments (enter
‘‘N/A’’ in the required fields if you wish
to remain anonymous). Copies of the
Regulatory Impact Review and Initial
Regulatory Flexibility Analysis (RIR/
IFRA) prepared for this action are
available from NMFS upon request (see
FOR FURTHER INFORMATION CONTACT).
NMFS has preliminarily determined
that this action qualifies for a
Categorical Exclusion from NEPA.
FOR FURTHER INFORMATION CONTACT: Paul
Marx, Chief, Financial Services
Division, National Marine Fisheries
Service, (301) 427–8771.
SUPPLEMENTARY INFORMATION:
I. Background
On February 20, 2003, Section 212 of
Division B, Title II, of Public Law 108–
7 (section 212) authorized a fishing
capacity reduction program (program)
for permits endorsed in seven fisheries:
the limited-entry trawl fishery under the
Pacific Coast Groundfish Fishery
Management Plan, excluding those
registered to whiting catcher-processors,
and corollary fisheries in California,
Oregon, and Washington for coastal
Dungeness crab and pink shrimp. On
May 28, 2003, NMFS published a
proposed notice outlining the terms and
conditions of the buyback program. Bid
offers totaling $46 million were
accepted for 91 vessels, encompassing
239 fishing permits and licenses. Ten
million dollars was appropriated by
Congress toward funding the buyback
program, the balance was funded
through a loan of $36 million. The
combined amount was issued to tender
payment to the accepted bidders. NMFS
published a final notice on July 18,
2003. A successful referendum in
October 2003 accepted the fee system.
On November 16, 2004, NMFS
published a proposed rule to implement
the industry fee system to repay the loan
portion of the buyback program. On
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April 8, 2005, NMFS published a
revised proposed rule. NMFS collected
comments and on July 13, 2005, NMFS
responded to the comments and
published a final rule establishing the
industry fee system rule. As a result,
seven loan subamounts were created for
each of the permitted fisheries. NMFS
began collecting buyback fee payments
to repay the debt obligation of $36
million at an interest rate of 6.97
percent over a term of 30 years on
September 8, 2005. Four of the seven
fisheries have repaid their loan
subamounts in full.
Congress enacted Public Law 113–291
Section 3095 (2015 National Defense
Authorization Act), which was signed
into law on December 19, 2014, to
refinance the existing debt obligation
funding the fishing capacity reduction
program for the Pacific Coast
Groundfish fishery implemented under
Section 212.
II. Refinance Cost
The amount paid to refinance the
existing Pacific Coast Groundfish loan
may not exceed $30 million and will not
exceed the amount of the outstanding
debt for the Pacific Coast Groundfish
federal limited-entry trawl, Washington
coastal Dungeness crab, and California
pink shrimp fishery loan subamounts
which are, as of March 30, 2015, $26M,
$0.3M, and $0.1M, respectively. The
Office of Management and Budget has
determined that a $10 million
appropriation will be necessary to fund
the reduced income to the U.S. Treasury
over the next 10 years due to the
reduction in the annual loan repayment
amount under the refinanced terms. A
$300,000 appropriation will also be
necessary to provide the subsidy
amount for the new loan, pursuant to
the Federal Credit Reform Act. NMFS
will not implement the refinance unless
these necessary funds are appropriated.
A final rule would not be effective until
appropriations are approved.
III. Program Overview
NMFS is implementing this
refinancing process pursuant to 2015
National Defense Authorization Act. A
refinancing would reduce the maximum
buyback fee payment amount from 5
percent of ex-vessel value to 3 percent
of ex-vessel value. The current loan
term of 30 years is 10 years into
repayment. Under the refinancing terms,
a new loan with a 45-year term would
be initiated, effectively providing the
original reduction program a 55-year
repayment term for permit holders in
these fisheries. The interest rate on the
refinanced loan will be the rate that the
Secretary pays to the Treasury to borrow
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the funds, which may be lower than the
current interest rate of 6.97 percent on
the original loan.
IV. Referendum
As part of the refinancing process,
NMFS will conduct referenda to
approve or reject the refinancing of the
current capacity reduction loan as soon
as practicable after publication of the
final rule. The original loan authorizing
legislation required that NMFS conduct
a referendum to approve repaying the
loan. The 2015 National Defense
Authorization Act authorized
refinancing of that reduction loan.
NMFS has determined that to
implement the 2015 Act properly, a
referendum will also be conducted to
ensure that a majority of permit holders
consent to the new terms. The
referendum process will take 30 days
and will not significantly increase the
time to complete the refinancing
process. Even if another method to
determine permit holder support for the
refinancing were permitted by statute,
the time to develop that method would
likely take longer than conducting a
referendum.
NMFS will conduct three separate
referenda to allow participants in each
fishery to indicate their interest in
refinancing the loan subamount for their
particular fishery. This is to ensure that
if one fishery does not approve a
refinancing, it does not prevent
participants in other fisheries from
approving a refinancing in their own
fishery.
Permit holders will have 30 days from
the date of notice to cast their vote. A
successful referendum means permit
holders in that particular fishery
authorize the fee required to repay the
refinanced reduction loan.
NMFS will mail referendum
information, voting instructions, and a
referendum ballot to the permit owner
of each groundfish permit in the Pacific
Coast Groundfish Federal limited-entry
trawl fishery and to the person who is
the holder of record of each state-issued
California pink shrimp or Washington
coastal Dungeness crab permit
(collectively, eligible voters). NMFS will
include the following information about
the refinancing:
• The program’s cost,
• The three reduction loan
subamounts,
• Current terms and conditions of the
capacity reduction loan, and
• The changes that will occur should
the referendum be successful.
NMFS will mail eligible voters a
separate referendum ballot for each
groundfish permit he/she owns and
each California pink shrimp or
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Washington coastal Dungeness crab
permit he/she holds. In other words,
eligible voters will have one ballot for
every such permit they hold. Permit
holders will only vote for the
refinancing of the loan subamount(s) for
fisheries in which they hold permits.
Immediately after the deadline for
NMFS’ receipt of ballots, NMFS will
tally votes for each fishery separately.
For a referendum to be successful, a
majority of the total eligible permit
holders in that fishery must vote in
favor of the refinancing. NMFS will mail
each eligible voter a notice about his/her
respective referendum’s outcome.
If a referendum is unsuccessful, the
refinancing fee for that fishery will not
be approved and the fee system rule at
§ 600.1102 will remain in effect for that
fishery.
If a referendum for a fishery loan is
successful, NMFS will repay the
original fishery’s loan subamount in full
and issue a new loan per the terms in
this rule. NMFS will rescind the loan
repayment terms at § 600.1102 and
those terms will be superseded with the
fee system in this rule reflecting the new
loan’s refinanced terms for that fishery.
V. Refinanced Loan
Any refinanced loan will mature 45
years from the date of the issuance of
the new loan. The principal amount will
be the current balance of principal and
interest on the fishery’s loan subamount
as of the date of funding of the new
refinanced loan. Fishery finance
program loans, including buyback loans,
have historically been issued at the
Treasury interest rate plus two
percentage points. The refinancing
terms in the 2015 National Defense
Authorization Act did not include
additional percentage points above the
Treasury interest rate. On the date of
issuance of any new loan, NMFS will
determine the reduction loan’s interest
rate in accordance with the 2015
National Defense Authorization Act,
Sec. 3095, and the framework
regulations at § 600.1012 to the extent
they do not conflict with Section 3095.
VI. Fee Payment Rate
NMFS will establish the fee rates
necessary to repay refinanced loan
amounts applicable to each fishery for
which there is a successful referendum.
The amount of the fee will be calculated
by NMFS on an annual basis as the
principal and interest payment amount
necessary to amortize the loan over a 45year term, not to exceed 3 percent of exvessel value. The fee shall be expressed
as a percentage of the ex-vessel value of
all fish harvested and landed in the
respective fisheries. In the event that
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46943
payments are insufficient to repay the
refinanced loan within the 45-year term,
NMFS will extend the term of the
repayment until the refinanced loan is
paid in full.
To verify that the fees collected do not
exceed three percent of the fishery
revenues, NMFS will compare the
annual total of principal and interest
due with the latest available annual
revenues in the fisheries. In the event
that any of the components necessary to
calculate the next year’s fee are not
available, or postponed, the fee will
remain at the previous year’s amount
until such time as new calculations are
made and communicated to the postrefinancing fishery participants.
If a refinanced fishery does not open
during a year, interest will continue to
accrue on the principal balance even
though no fee revenue will be generated.
If this happens, when the fishery opens,
NMFS shall increase the fee to the
maximum three percent, apply all
subsequent fee revenue first to the
payment of accrued interest, and
continue the maximum fee rates until
the principal and interest payments
become current. Once all principal and
interest payments are current, NMFS
will make a determination about
adjusting the fee rate.
VII. Fee Payment and Collection
Fish sellers will pay the fees and fish
buyers will collect, deposit, disburse,
record, and report on the fees in
accordance with the applicable portions
of the framework regulations
(§ 600.1014), the 2015 National Defense
Authorization Act, Section 3095,
§ 600.1102, and this final rule. This
process would not change from the
current fishing capacity reduction loan
program.
NMFS entered into agreements with
California, Oregon, and Washington to
provide necessary information on fish
tickets, buyers, and harvesters to collect
the fees that repay the current reduction
loan, and these agreements will not
change as a result of any refinancing.
The three states will be notified of this
proposed rule, a final rule and, if there
is a successful referendum, that a
refinancing has occurred.
VIII. Enforcement/Prohibitions and
Penalties
All requirements and penalties set
forth in the provisions of § 600.1013
(Fee payment and collection),
§ 600.1014 (Fee collection deposits,
disbursements, records, and reports),
§ 600.1015 (Late charges), and
§ 600.1017 (Prohibitions and penalties)
shall apply to any dealer who purchases
fish in the refinanced reduction
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Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules
fisheries, and to any fee collection
under this section, to the extent they do
not conflict with this section or with
subpart M of this part.
The provisions and requirements of
§ 600.1016 (Enforcement) shall also
apply to fish sellers and fish buyers
subject to this fishery.
Additionally, fish buyers are
prohibited from buying fish from
reduction fishery participants who do
not pay the required landing fee and
prohibits reduction fishery participants
from selling fish to buyers who do not
collect the fees.
Classification
The Assistant Administrator for
Fisheries, NMFS, determined that this
action is consistent with Public Law
113–291, Public Law 107–206, Public
Law 108–7, the Magnuson-Stevens
Fishery Conservation and Management
Act, and other applicable laws. NMFS
has preliminarily determined that the
proposed action would qualify as a
Categorical Exclusion under the
National Environmental Policy Act. The
Office of Management and Budget has
determined that this proposed rule is
not significant under Executive Order
12866.
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RIR/IRFA
NMFS has prepared a Regulatory
Impact Review (RIR) and an Initial
Regulatory Flexibility Analysis (IRFA)
for this action (see ADDRESSES). NMFS
believes any Federalism implications
arising from this notice are highly
unlikely. Consultations with the States
of Washington, Oregon, and California
were previously conducted regarding
the Pacific Coast Groundfish Fishing
Capacity Reduction Program and those
states will have additional opportunity
to comment on this proposed rule. In
2014, NMFS implemented the cost
recovery program to recover the
associated costs with management, data
collection and enforcement of the
Pacific Coast Groundfish trawl
rationalization program, which added
another cost to harvesters in this fishery
of up to 3 percent of value of fish sold.
This additional fee has reduced their
income so the request to refinance is in
part to obtain fee relief for harvesters in
that fishery.
Impact to Small Businesses
The Small Business Administration
(SBA) has defined small entities as all
fish harvesting businesses that are
independently owned and operated, not
dominant in their field of operation, and
with annual receipts of less than $20.5
million for finfish harvesters or $7.5
million for shellfish harvesters. In
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16:37 Aug 05, 2015
Jkt 235001
addition, processors with 500 or fewer
employees for related industries
involved in canned and cured fish and
seafood, or preparing fresh fish and
seafood, are also considered small
entities. According to the SBA’s
definition of a small entity, most of the
vessels would be considered small
entities. However, there are no
disproportionate impacts between large
and small entities. This proposed action
would not result in changes to
allocation percentages and would not
change the number of vessels
participating in the fishery. As such, net
effects on small businesses of this action
are expected to be minimal relative to
the status quo.
Dated: July 31, 2015
Samuel D. Rauch III,
Deputy Assistant Administrator for
Regulatory Programs, National Marine
Fisheries Service.
Paperwork Reduction Act (PRA)
Authority: 5 U.S.C. 561, 16 U.S.C. 1801 et
seq., 16 U.S.C. 1861a(b) through (e), section
212 of Pub. L. 107–206, section 501 of Pub.
L. 108–7, section 3095 Pub. L. 113–291, and
46 U.S.C. 53701 et seq.
This document contains collection of
information requirements subject to the
Paperwork Reduction Act (PRA). The
Office of Management and Budget
(OMB) has approved these information
collections under OMB control number
0648–0376. NMFS estimates that the
public reporting burden for these
requirements will average 4 hours for
voting in a referendum. Persons affected
by this action would also be subject to
other collection-of-information
requirements referred to in this action
and also approved under 0648–0376.
These requirements and their associated
response times are 10 minutes for
completing and filing a fish ticket, 2
hours for submitting a monthly fish
buyer report, and 4 hours for making a
fish seller/buyer report when one party
fails to either pay or collect the fee.
These response estimates include the
time for reviewing instructions,
searching existing data sources,
gathering and maintaining the data
needed, and completing and reviewing
the information collection. Send
comments regarding this burden
estimate, or any other aspect of this data
collection, including suggestions for
reducing the burden, to NMFS (see
ADDRESSES). Notwithstanding any other
provision of law, no person is required
to respond to, and no person is subject
to a penalty for failure to comply with,
an information collection subject to the
requirements of the PRA unless that
information collection displays a
currently valid OMB control number.
List of Subjects in 50 CFR Part 600
Fisheries, Fishing capacity reduction,
Fishing permits, Fishing vessels,
Intergovernmental relations, Loan
programs-business, Reporting and
recordkeeping requirements.
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For the reasons set out in the
preamble, 50 CFR part 600, subpart M,
is proposed to be amended as follows:
PART 600—MAGNUSON-STEVENS
ACT PROVISIONS
Subpart M—Specific Fishery or
Program Fishing Capacity Reduction
Regulations
1. The authority citation for 50 CFR
part 600, subpart M, is revised to read
as follows:
■
2. Section 600.1109 is added to
subpart M to read as follows:
■
§ 600.1109 Refinance of the Pacific Coast
Groundfish Fishing Capacity Reduction
Program, including fee payment and
collection system.
(a) Purpose. Upon successful
referenda, this section implements the
refinancing of three of the fishing
capacity reduction loan subamounts for
the Pacific Coast Groundfish Fishing
Capacity Reduction Program enacted by
Section 212 of Public Law 107–206 and
Section 501 of Public Law 108–7, as
amended by Section 3095 of Public Law
113–291 (the Act). The intent of the
program is to refinance, through an
industry-financed loan, the current debt
obligation for the reduction of permits
previously purchased in the Pacific
Coast Groundfish Buyback Program.
Fishery participants will finance this
program through federal loans that will
be repaid over 45 years through a fee
collection system. The intent of the fee
collection system is to establish the
permit holders’ obligation to repay the
Refinanced Loans’ principal and
accrued interest over the repayment
term, and to ensure repayment of the
new loans.
(b) Definitions. Unless otherwise
defined in this section, the terms
defined in §§ 600.1000 and 600.1102
expressly apply to this section. The
following terms have the following
meanings for the purpose of this section:
Refinanced loans means the loans
used to refinance the original reduction
loan under Section 3095 of Public Law
113–291.
Refinancing plan means the
implementation of the changes in terms
and conditions authorized by Section
3095 of Public Law 113–291.
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Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules
Refinanced reduction fisheries means
the Pacific Coast Groundfish federal
limited-entry trawl fishery (excluding
those permits which are endorsed for
catch-processors), Washington coastal
Dungeness crab and California pink
shrimp fisheries.
(c) Refinanced fishing capacity
reduction loan. In the event of
successful referenda, the fishing
capacity reduction loan implemented in
2004 in the Pacific Coast Groundfish
federal limited-entry trawl, Washington
coastal Dungeness crab, or California
pink shrimp fisheries would be
refinanced into one, two, or three loans
modifying certain terms to extend the 30
year term to maturity to 45 years,
change the interest rate to the current
Treasury interest rate, and reduce the
maximum repayment fee from five to
three percent of ex-vessel value.
(1) Referenda. Subsequent to the
publication of a final rule resulting from
this proposed rule, NMFS will conduct
three separate referenda to allow each
participant in each fishery to vote his/
her interest in his/her particular fishery.
This is to ensure that if one fishery does
not approve the refinancing of its loan
subamount, it does not prevent
participants in the other fisheries from
approving the refinancing in their
respective fisheries. NMFS shall publish
a notice in the Federal Register
requesting votes by permit holders on
whether to accept or reject the
refinancing plan. The notice shall state
the starting and ending dates and times
of the voting period. The end date shall
be thirty (30) days from the start date.
(i) Such notice shall state the name
and address of record of each eligible
voter, as well as the basis for having
determined the eligibility of those
voters. This shall constitute notice and
opportunity to respond about adding
eligible voters, deleting ineligible voters,
and/or correcting any voter’s name and
address of record. If, in NMFS’
discretion, the comments received in
response to such notice warrants it, or
for other good cause, NMFS may modify
such list by publishing another notice in
the Federal Register. NMFS shall issue
ballots to eligible voters, tally votes, and
notify voters whether the referendum
was successful or unsuccessful in
approving the Refinancing Plan
consistent with the provisions of
§ 600.1010.
(ii) A successful referendum by a
majority of the permit holders in their
respective fishery shall bind all parties
and complete the refinancing. NMFS
shall publish a notice in the Federal
Register advising the public that the
referendum was successful. Thereafter
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16:37 Aug 05, 2015
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the Refinancing Plan shall be
implemented.
(iii) The provisions of §§ 600.1010
and 600.1017(a)(1)–(4) shall apply to
any referendum of a Refinancing Loan
conducted under this section to the
extent that they are not inconsistent
with and do not conflict with this
section or with subpart M of this part.
(2) Refinanced loan repayment.
Permit holders operating in the
refinanced reduction fishery shall be
obligated to pay the fee in accordance
with this section. In the event that
payments made are insufficient to pay a
Refinanced Loan within the 45-year
term, NMFS shall extend the term of the
repayment until the Refinanced Loan is
paid in full.
(i) Refinanced loan amount. The
amount paid to refinance the existing
Pacific Coast Groundfish loan may not
exceed $30 million and will not exceed
the amount of the outstanding debt for
the Pacific Coast Groundfish federal
limited-entry trawl, Washington coastal
Dungeness crab, and California pink
shrimp fishery loan subamounts.
(ii) Repayment term. As authorized by
the Act, a Refinanced Loan shall be
amortized over a forty-five (45) year
term. A final Refinanced Loan periodic
payment amount will be determined by
NMFS’ analysis of the ability of the
post-reduction fishery to service debt,
up to a maximum of 3 percent of exvessel value. The provisions of
§§ 600.1012–600.1017 shall apply to any
reduction loan, fee payment and
collection under this section to the
extent they do not conflict with this
section or with subpart M of this part.
(iii) Interest. NMFS will determine a
Reduction Loan’s initial interest rate
when NMFS borrows from the U.S.
Treasury the funds with which to
refinance the reduction loan. Interest
will begin accruing on a Refinanced
Loan from the date on which NMFS
refinances the reduction loan. The
initial interest rate will change to a final
interest rate at the end of the Federal
fiscal year in which NMFS borrows the
funds from the U.S. Treasury. The final
interest rate will be a weighted average,
throughout that fiscal year, of the U.S.
Treasury’s cost of borrowing equivalent
maturity funds. The final interest rate
will be fixed and will not vary over the
remainder of the refinanced reduction
loan’s 45-year term. Refinanced Loans
will be subject to a level debt
amortization. There is no prepayment
penalty.
(iv) Fees. Fees will be collected,
deposited, disbursed, and recorded in
accordance with § 600.1109(d).
(d) Fee system. Post-refinancing
permit holders operating in the fishery
PO 00000
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Sfmt 4702
46945
shall be obligated to pay the fee in
accordance with the following: The
amount of such fee will be calculated by
NMFS on an annual basis as the
principal and interest payment amount
necessary to amortize a loan over a 45year term, not to exceed 3 percent of exvessel value. The fee shall be expressed
as a percentage of the ex-vessel value of
all fee fish harvested and landed in the
respective fisheries. In the event that
payments made under the Refinanced
Reduction Plan are insufficient to repay
a Refinanced Loan within the 45-year
term, NMFS shall extend the term of the
repayment until the Refinanced Loan is
paid in full.
(1) Collection. The buyer who first
purchases the fee fish landed in a
fishery shall be responsible for
collecting and submitting the repayment
fees to NMFS monthly. The fees shall be
submitted to NMFS no later than
fourteen (14) calendar days following
the end of each calendar month. Fees
must be assessed and collected on all
fee fish harvested in the fisheries.
(2) Fee amount. Although the fee
could be up to three percent of the exvessel price of all post-refinancing
landings, the fee will be less than three
percent if NMFS projects that a lesser
rate can amortize the Refinanced Loan
over the 45-year term. To verify that the
fees collected do not exceed 3 percent
of the fishery revenues, NMFS will
compare the annual total of principal
and interest due with the latest available
annual revenues in the fisheries to
ensure that it is equal to or less than
three percent of the total ex-vessel
production revenues. In the event that
any of the components necessary to
calculate the next year’s fee are not
available, or postponed, the fee will
remain at the previous year’s amount
until such time as new calculations are
made and communicated to the postrefinancing fishery participants.
(i) If a refinanced fishery does not
open during a year, interest will
continue to accrue on the principal
balance even though no fee revenue will
be generated. If this happens, when the
fishery opens, NMFS shall increase the
fee to the maximum three percent, apply
all subsequent fee revenue first to the
payment of accrued interest, and
continue the maximum fee rates until
the principal and interest payments
become current. Once all principal and
interest payments are current, NMFS
will make a determination about
adjusting the fee rate.
(ii) [Reserved]
(3) Recordkeeping and reporting. The
dealer who first purchases the fee fish
landed in the fishery shall be
responsible for compliance with the
E:\FR\FM\06AUP1.SGM
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Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules
mstockstill on DSK4VPTVN1PROD with PROPOSALS
applicable recordkeeping and reporting
requirements.
(4) All requirements and penalties set
forth in the provisions of § 600.1013
(Fee payment and collection),
§ 600.1014 (Fee collection deposits,
disbursements, records, and reports),
§ 600.1015 (Late charges), and
§ 600.1017 (Prohibitions and penalties)
shall apply to any dealer who purchases
fish in the refinanced reduction
fisheries, and to any fee collection
under this section, to the extent they do
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16:37 Aug 05, 2015
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not conflict with this section or with
subpart M of this part.
(e) Enforcement for failure to pay fees.
The provisions and requirements of
§ 600.1016 (Enforcement) shall also
apply to fish sellers and fish buyers
subject to this fishery.
(f) Prohibitions and penalties. The
provisions and requirements of
§ 600.1017 shall also apply to fish
sellers and fish buyers subject to this
fishery. In addition, fish buyers are
prohibited from purchasing fish from
PO 00000
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Fmt 4702
Sfmt 9990
fish sellers who do not pay the required
landing fees. Fish sellers are prohibited
from selling to fish buyers who do not
pay the required landing fees.
(g) The provisions of § 600.1102 shall
apply to any fee collection as
implemented by the Refinancing Plan to
the extent that they do not conflict with
this section or with subpart M of this
part.
[FR Doc. 2015–19261 Filed 8–5–15; 8:45 am]
BILLING CODE 3510–22–P
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]]>Agencies
[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Proposed Rules]
[Pages 46941-46946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19261]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 600
[Docket No. 150227192-5192-01]
RIN 0648-BE90
Magnuson-Stevens Act Provisions; Refinance of the Pacific Coast
Groundfish Fishing Capacity Reduction Loan; Pacific Coast Groundfish
Federal Limited-Entry Trawl, Washington Coastal Dungeness Crab and
California Pink Shrimp Fisheries; Refinanced Reduction Loan Terms and
Industry Fee System
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
[[Page 46942]]
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: NMFS is proposing regulations that would refinance the 30-year
voluntary fishing capacity reduction loan implemented in 2004 into
three separate loans, if approved through referenda, in the Pacific
Coast Groundfish federal limited-entry trawl, Washington coastal
Dungeness crab, and California pink shrimp fisheries (collectively
known hereafter as the refinanced reduction fisheries). The refinanced
loan, of up to $30 million, would establish a new industry fee system
for future landings of the refinanced reduction fisheries. The 2015
National Defense Authorization Act authorized NMFS to refinance the
loan and modify certain terms to extend the 30 year term to maturity to
45 years, change the interest rate to the current Treasury interest
rate and, reduce the maximum repayment fee from five to three percent
of ex-vessel value. If finalized, and with the receipt of an
appropriation, NMFS proposes to refinance the single existing debt,
which has been divided into seven loan subamounts, into three separate
loans. NMFS would conduct three referenda as soon as practicable after
publication of the final rule in each of the Pacific Coast Groundfish
federal limited-entry trawl, Washington coastal Dungeness crab and
California pink shrimp fisheries. If a referendum in one, two, or all
three of the fisheries is successful, that fishery's current loan would
be repaid in full and new loans in the amount of the principal and
interest balance as of the date of funding would be issued per the
terms in the 2015 National Defense Authorization Act. These terms
include a new 45-year term to maturity, interest charged at a current
Treasury interest rate, and a maximum repayment fee of 3 percent of ex-
vessel value.
DATES: NMFS must receive comments by September 8, 2015.
ADDRESSES: You may submit comments on this document, identified by
NOAA-NMFS-2015-0033, by either of the following methods:
Electronic Submission: Submit all electronic public comments via
the Federal e-Rulemaking Portal.
1. Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2015-0033,
2. Click the ``Comment Now!'' icon, complete the required fields
3. Enter or attach your comments.
--OR--
Mail: Submit written comments to Paul Marx, Chief, Financial
Services Division, National Marine Fisheries Service, 1315 East-West
Highway, Silver Spring, MD 20910-3282.
Instructions: Comments sent by any other method, to any other
address or individual, or received after the end of the comment period,
may not be considered by NMFS. All comments received are a part of the
public record and will generally be posted for public viewing on
www.regulations.gov without change. All personal identifying
information (e.g., name, address, etc.), confidential business
information, or otherwise sensitive information submitted voluntarily
by the sender will be publicly accessible. NMFS will accept anonymous
comments (enter ``N/A'' in the required fields if you wish to remain
anonymous). Copies of the Regulatory Impact Review and Initial
Regulatory Flexibility Analysis (RIR/IFRA) prepared for this action are
available from NMFS upon request (see FOR FURTHER INFORMATION CONTACT).
NMFS has preliminarily determined that this action qualifies for a
Categorical Exclusion from NEPA.
FOR FURTHER INFORMATION CONTACT: Paul Marx, Chief, Financial Services
Division, National Marine Fisheries Service, (301) 427-8771.
SUPPLEMENTARY INFORMATION:
I. Background
On February 20, 2003, Section 212 of Division B, Title II, of
Public Law 108-7 (section 212) authorized a fishing capacity reduction
program (program) for permits endorsed in seven fisheries: the limited-
entry trawl fishery under the Pacific Coast Groundfish Fishery
Management Plan, excluding those registered to whiting catcher-
processors, and corollary fisheries in California, Oregon, and
Washington for coastal Dungeness crab and pink shrimp. On May 28, 2003,
NMFS published a proposed notice outlining the terms and conditions of
the buyback program. Bid offers totaling $46 million were accepted for
91 vessels, encompassing 239 fishing permits and licenses. Ten million
dollars was appropriated by Congress toward funding the buyback
program, the balance was funded through a loan of $36 million. The
combined amount was issued to tender payment to the accepted bidders.
NMFS published a final notice on July 18, 2003. A successful referendum
in October 2003 accepted the fee system. On November 16, 2004, NMFS
published a proposed rule to implement the industry fee system to repay
the loan portion of the buyback program. On April 8, 2005, NMFS
published a revised proposed rule. NMFS collected comments and on July
13, 2005, NMFS responded to the comments and published a final rule
establishing the industry fee system rule. As a result, seven loan
subamounts were created for each of the permitted fisheries. NMFS began
collecting buyback fee payments to repay the debt obligation of $36
million at an interest rate of 6.97 percent over a term of 30 years on
September 8, 2005. Four of the seven fisheries have repaid their loan
subamounts in full.
Congress enacted Public Law 113-291 Section 3095 (2015 National
Defense Authorization Act), which was signed into law on December 19,
2014, to refinance the existing debt obligation funding the fishing
capacity reduction program for the Pacific Coast Groundfish fishery
implemented under Section 212.
II. Refinance Cost
The amount paid to refinance the existing Pacific Coast Groundfish
loan may not exceed $30 million and will not exceed the amount of the
outstanding debt for the Pacific Coast Groundfish federal limited-entry
trawl, Washington coastal Dungeness crab, and California pink shrimp
fishery loan subamounts which are, as of March 30, 2015, $26M, $0.3M,
and $0.1M, respectively. The Office of Management and Budget has
determined that a $10 million appropriation will be necessary to fund
the reduced income to the U.S. Treasury over the next 10 years due to
the reduction in the annual loan repayment amount under the refinanced
terms. A $300,000 appropriation will also be necessary to provide the
subsidy amount for the new loan, pursuant to the Federal Credit Reform
Act. NMFS will not implement the refinance unless these necessary funds
are appropriated. A final rule would not be effective until
appropriations are approved.
III. Program Overview
NMFS is implementing this refinancing process pursuant to 2015
National Defense Authorization Act. A refinancing would reduce the
maximum buyback fee payment amount from 5 percent of ex-vessel value to
3 percent of ex-vessel value. The current loan term of 30 years is 10
years into repayment. Under the refinancing terms, a new loan with a
45-year term would be initiated, effectively providing the original
reduction program a 55-year repayment term for permit holders in these
fisheries. The interest rate on the refinanced loan will be the rate
that the Secretary pays to the Treasury to borrow
[[Page 46943]]
the funds, which may be lower than the current interest rate of 6.97
percent on the original loan.
IV. Referendum
As part of the refinancing process, NMFS will conduct referenda to
approve or reject the refinancing of the current capacity reduction
loan as soon as practicable after publication of the final rule. The
original loan authorizing legislation required that NMFS conduct a
referendum to approve repaying the loan. The 2015 National Defense
Authorization Act authorized refinancing of that reduction loan. NMFS
has determined that to implement the 2015 Act properly, a referendum
will also be conducted to ensure that a majority of permit holders
consent to the new terms. The referendum process will take 30 days and
will not significantly increase the time to complete the refinancing
process. Even if another method to determine permit holder support for
the refinancing were permitted by statute, the time to develop that
method would likely take longer than conducting a referendum.
NMFS will conduct three separate referenda to allow participants in
each fishery to indicate their interest in refinancing the loan
subamount for their particular fishery. This is to ensure that if one
fishery does not approve a refinancing, it does not prevent
participants in other fisheries from approving a refinancing in their
own fishery.
Permit holders will have 30 days from the date of notice to cast
their vote. A successful referendum means permit holders in that
particular fishery authorize the fee required to repay the refinanced
reduction loan.
NMFS will mail referendum information, voting instructions, and a
referendum ballot to the permit owner of each groundfish permit in the
Pacific Coast Groundfish Federal limited-entry trawl fishery and to the
person who is the holder of record of each state-issued California pink
shrimp or Washington coastal Dungeness crab permit (collectively,
eligible voters). NMFS will include the following information about the
refinancing:
The program's cost,
The three reduction loan subamounts,
Current terms and conditions of the capacity reduction
loan, and
The changes that will occur should the referendum be
successful.
NMFS will mail eligible voters a separate referendum ballot for
each groundfish permit he/she owns and each California pink shrimp or
Washington coastal Dungeness crab permit he/she holds. In other words,
eligible voters will have one ballot for every such permit they hold.
Permit holders will only vote for the refinancing of the loan
subamount(s) for fisheries in which they hold permits.
Immediately after the deadline for NMFS' receipt of ballots, NMFS
will tally votes for each fishery separately.
For a referendum to be successful, a majority of the total eligible
permit holders in that fishery must vote in favor of the refinancing.
NMFS will mail each eligible voter a notice about his/her respective
referendum's outcome.
If a referendum is unsuccessful, the refinancing fee for that
fishery will not be approved and the fee system rule at Sec. 600.1102
will remain in effect for that fishery.
If a referendum for a fishery loan is successful, NMFS will repay
the original fishery's loan subamount in full and issue a new loan per
the terms in this rule. NMFS will rescind the loan repayment terms at
Sec. 600.1102 and those terms will be superseded with the fee system
in this rule reflecting the new loan's refinanced terms for that
fishery.
V. Refinanced Loan
Any refinanced loan will mature 45 years from the date of the
issuance of the new loan. The principal amount will be the current
balance of principal and interest on the fishery's loan subamount as of
the date of funding of the new refinanced loan. Fishery finance program
loans, including buyback loans, have historically been issued at the
Treasury interest rate plus two percentage points. The refinancing
terms in the 2015 National Defense Authorization Act did not include
additional percentage points above the Treasury interest rate. On the
date of issuance of any new loan, NMFS will determine the reduction
loan's interest rate in accordance with the 2015 National Defense
Authorization Act, Sec. 3095, and the framework regulations at Sec.
600.1012 to the extent they do not conflict with Section 3095.
VI. Fee Payment Rate
NMFS will establish the fee rates necessary to repay refinanced
loan amounts applicable to each fishery for which there is a successful
referendum. The amount of the fee will be calculated by NMFS on an
annual basis as the principal and interest payment amount necessary to
amortize the loan over a 45-year term, not to exceed 3 percent of ex-
vessel value. The fee shall be expressed as a percentage of the ex-
vessel value of all fish harvested and landed in the respective
fisheries. In the event that payments are insufficient to repay the
refinanced loan within the 45-year term, NMFS will extend the term of
the repayment until the refinanced loan is paid in full.
To verify that the fees collected do not exceed three percent of
the fishery revenues, NMFS will compare the annual total of principal
and interest due with the latest available annual revenues in the
fisheries. In the event that any of the components necessary to
calculate the next year's fee are not available, or postponed, the fee
will remain at the previous year's amount until such time as new
calculations are made and communicated to the post-refinancing fishery
participants.
If a refinanced fishery does not open during a year, interest will
continue to accrue on the principal balance even though no fee revenue
will be generated. If this happens, when the fishery opens, NMFS shall
increase the fee to the maximum three percent, apply all subsequent fee
revenue first to the payment of accrued interest, and continue the
maximum fee rates until the principal and interest payments become
current. Once all principal and interest payments are current, NMFS
will make a determination about adjusting the fee rate.
VII. Fee Payment and Collection
Fish sellers will pay the fees and fish buyers will collect,
deposit, disburse, record, and report on the fees in accordance with
the applicable portions of the framework regulations (Sec. 600.1014),
the 2015 National Defense Authorization Act, Section 3095, Sec.
600.1102, and this final rule. This process would not change from the
current fishing capacity reduction loan program.
NMFS entered into agreements with California, Oregon, and
Washington to provide necessary information on fish tickets, buyers,
and harvesters to collect the fees that repay the current reduction
loan, and these agreements will not change as a result of any
refinancing. The three states will be notified of this proposed rule, a
final rule and, if there is a successful referendum, that a refinancing
has occurred.
VIII. Enforcement/Prohibitions and Penalties
All requirements and penalties set forth in the provisions of Sec.
600.1013 (Fee payment and collection), Sec. 600.1014 (Fee collection
deposits, disbursements, records, and reports), Sec. 600.1015 (Late
charges), and Sec. 600.1017 (Prohibitions and penalties) shall apply
to any dealer who purchases fish in the refinanced reduction
[[Page 46944]]
fisheries, and to any fee collection under this section, to the extent
they do not conflict with this section or with subpart M of this part.
The provisions and requirements of Sec. 600.1016 (Enforcement)
shall also apply to fish sellers and fish buyers subject to this
fishery.
Additionally, fish buyers are prohibited from buying fish from
reduction fishery participants who do not pay the required landing fee
and prohibits reduction fishery participants from selling fish to
buyers who do not collect the fees.
Classification
The Assistant Administrator for Fisheries, NMFS, determined that
this action is consistent with Public Law 113-291, Public Law 107-206,
Public Law 108-7, the Magnuson-Stevens Fishery Conservation and
Management Act, and other applicable laws. NMFS has preliminarily
determined that the proposed action would qualify as a Categorical
Exclusion under the National Environmental Policy Act. The Office of
Management and Budget has determined that this proposed rule is not
significant under Executive Order 12866.
RIR/IRFA
NMFS has prepared a Regulatory Impact Review (RIR) and an Initial
Regulatory Flexibility Analysis (IRFA) for this action (see ADDRESSES).
NMFS believes any Federalism implications arising from this notice are
highly unlikely. Consultations with the States of Washington, Oregon,
and California were previously conducted regarding the Pacific Coast
Groundfish Fishing Capacity Reduction Program and those states will
have additional opportunity to comment on this proposed rule. In 2014,
NMFS implemented the cost recovery program to recover the associated
costs with management, data collection and enforcement of the Pacific
Coast Groundfish trawl rationalization program, which added another
cost to harvesters in this fishery of up to 3 percent of value of fish
sold. This additional fee has reduced their income so the request to
refinance is in part to obtain fee relief for harvesters in that
fishery.
Impact to Small Businesses
The Small Business Administration (SBA) has defined small entities
as all fish harvesting businesses that are independently owned and
operated, not dominant in their field of operation, and with annual
receipts of less than $20.5 million for finfish harvesters or $7.5
million for shellfish harvesters. In addition, processors with 500 or
fewer employees for related industries involved in canned and cured
fish and seafood, or preparing fresh fish and seafood, are also
considered small entities. According to the SBA's definition of a small
entity, most of the vessels would be considered small entities.
However, there are no disproportionate impacts between large and small
entities. This proposed action would not result in changes to
allocation percentages and would not change the number of vessels
participating in the fishery. As such, net effects on small businesses
of this action are expected to be minimal relative to the status quo.
Paperwork Reduction Act (PRA)
This document contains collection of information requirements
subject to the Paperwork Reduction Act (PRA). The Office of Management
and Budget (OMB) has approved these information collections under OMB
control number 0648-0376. NMFS estimates that the public reporting
burden for these requirements will average 4 hours for voting in a
referendum. Persons affected by this action would also be subject to
other collection-of-information requirements referred to in this action
and also approved under 0648-0376. These requirements and their
associated response times are 10 minutes for completing and filing a
fish ticket, 2 hours for submitting a monthly fish buyer report, and 4
hours for making a fish seller/buyer report when one party fails to
either pay or collect the fee. These response estimates include the
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the information collection. Send comments regarding this burden
estimate, or any other aspect of this data collection, including
suggestions for reducing the burden, to NMFS (see ADDRESSES).
Notwithstanding any other provision of law, no person is required to
respond to, and no person is subject to a penalty for failure to comply
with, an information collection subject to the requirements of the PRA
unless that information collection displays a currently valid OMB
control number.
List of Subjects in 50 CFR Part 600
Fisheries, Fishing capacity reduction, Fishing permits, Fishing
vessels, Intergovernmental relations, Loan programs-business, Reporting
and recordkeeping requirements.
Dated: July 31, 2015
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
For the reasons set out in the preamble, 50 CFR part 600, subpart
M, is proposed to be amended as follows:
PART 600--MAGNUSON-STEVENS ACT PROVISIONS
Subpart M--Specific Fishery or Program Fishing Capacity Reduction
Regulations
0
1. The authority citation for 50 CFR part 600, subpart M, is revised to
read as follows:
Authority: 5 U.S.C. 561, 16 U.S.C. 1801 et seq., 16 U.S.C.
1861a(b) through (e), section 212 of Pub. L. 107-206, section 501 of
Pub. L. 108-7, section 3095 Pub. L. 113-291, and 46 U.S.C. 53701 et
seq.
0
2. Section 600.1109 is added to subpart M to read as follows:
Sec. 600.1109 Refinance of the Pacific Coast Groundfish Fishing
Capacity Reduction Program, including fee payment and collection
system.
(a) Purpose. Upon successful referenda, this section implements the
refinancing of three of the fishing capacity reduction loan subamounts
for the Pacific Coast Groundfish Fishing Capacity Reduction Program
enacted by Section 212 of Public Law 107-206 and Section 501 of Public
Law 108-7, as amended by Section 3095 of Public Law 113-291 (the Act).
The intent of the program is to refinance, through an industry-financed
loan, the current debt obligation for the reduction of permits
previously purchased in the Pacific Coast Groundfish Buyback Program.
Fishery participants will finance this program through federal loans
that will be repaid over 45 years through a fee collection system. The
intent of the fee collection system is to establish the permit holders'
obligation to repay the Refinanced Loans' principal and accrued
interest over the repayment term, and to ensure repayment of the new
loans.
(b) Definitions. Unless otherwise defined in this section, the
terms defined in Sec. Sec. 600.1000 and 600.1102 expressly apply to
this section. The following terms have the following meanings for the
purpose of this section:
Refinanced loans means the loans used to refinance the original
reduction loan under Section 3095 of Public Law 113-291.
Refinancing plan means the implementation of the changes in terms
and conditions authorized by Section 3095 of Public Law 113-291.
[[Page 46945]]
Refinanced reduction fisheries means the Pacific Coast Groundfish
federal limited-entry trawl fishery (excluding those permits which are
endorsed for catch-processors), Washington coastal Dungeness crab and
California pink shrimp fisheries.
(c) Refinanced fishing capacity reduction loan. In the event of
successful referenda, the fishing capacity reduction loan implemented
in 2004 in the Pacific Coast Groundfish federal limited-entry trawl,
Washington coastal Dungeness crab, or California pink shrimp fisheries
would be refinanced into one, two, or three loans modifying certain
terms to extend the 30 year term to maturity to 45 years, change the
interest rate to the current Treasury interest rate, and reduce the
maximum repayment fee from five to three percent of ex-vessel value.
(1) Referenda. Subsequent to the publication of a final rule
resulting from this proposed rule, NMFS will conduct three separate
referenda to allow each participant in each fishery to vote his/her
interest in his/her particular fishery. This is to ensure that if one
fishery does not approve the refinancing of its loan subamount, it does
not prevent participants in the other fisheries from approving the
refinancing in their respective fisheries. NMFS shall publish a notice
in the Federal Register requesting votes by permit holders on whether
to accept or reject the refinancing plan. The notice shall state the
starting and ending dates and times of the voting period. The end date
shall be thirty (30) days from the start date.
(i) Such notice shall state the name and address of record of each
eligible voter, as well as the basis for having determined the
eligibility of those voters. This shall constitute notice and
opportunity to respond about adding eligible voters, deleting
ineligible voters, and/or correcting any voter's name and address of
record. If, in NMFS' discretion, the comments received in response to
such notice warrants it, or for other good cause, NMFS may modify such
list by publishing another notice in the Federal Register. NMFS shall
issue ballots to eligible voters, tally votes, and notify voters
whether the referendum was successful or unsuccessful in approving the
Refinancing Plan consistent with the provisions of Sec. 600.1010.
(ii) A successful referendum by a majority of the permit holders in
their respective fishery shall bind all parties and complete the
refinancing. NMFS shall publish a notice in the Federal Register
advising the public that the referendum was successful. Thereafter the
Refinancing Plan shall be implemented.
(iii) The provisions of Sec. Sec. 600.1010 and 600.1017(a)(1)-(4)
shall apply to any referendum of a Refinancing Loan conducted under
this section to the extent that they are not inconsistent with and do
not conflict with this section or with subpart M of this part.
(2) Refinanced loan repayment. Permit holders operating in the
refinanced reduction fishery shall be obligated to pay the fee in
accordance with this section. In the event that payments made are
insufficient to pay a Refinanced Loan within the 45-year term, NMFS
shall extend the term of the repayment until the Refinanced Loan is
paid in full.
(i) Refinanced loan amount. The amount paid to refinance the
existing Pacific Coast Groundfish loan may not exceed $30 million and
will not exceed the amount of the outstanding debt for the Pacific
Coast Groundfish federal limited-entry trawl, Washington coastal
Dungeness crab, and California pink shrimp fishery loan subamounts.
(ii) Repayment term. As authorized by the Act, a Refinanced Loan
shall be amortized over a forty-five (45) year term. A final Refinanced
Loan periodic payment amount will be determined by NMFS' analysis of
the ability of the post-reduction fishery to service debt, up to a
maximum of 3 percent of ex-vessel value. The provisions of Sec. Sec.
600.1012-600.1017 shall apply to any reduction loan, fee payment and
collection under this section to the extent they do not conflict with
this section or with subpart M of this part.
(iii) Interest. NMFS will determine a Reduction Loan's initial
interest rate when NMFS borrows from the U.S. Treasury the funds with
which to refinance the reduction loan. Interest will begin accruing on
a Refinanced Loan from the date on which NMFS refinances the reduction
loan. The initial interest rate will change to a final interest rate at
the end of the Federal fiscal year in which NMFS borrows the funds from
the U.S. Treasury. The final interest rate will be a weighted average,
throughout that fiscal year, of the U.S. Treasury's cost of borrowing
equivalent maturity funds. The final interest rate will be fixed and
will not vary over the remainder of the refinanced reduction loan's 45-
year term. Refinanced Loans will be subject to a level debt
amortization. There is no prepayment penalty.
(iv) Fees. Fees will be collected, deposited, disbursed, and
recorded in accordance with Sec. 600.1109(d).
(d) Fee system. Post-refinancing permit holders operating in the
fishery shall be obligated to pay the fee in accordance with the
following: The amount of such fee will be calculated by NMFS on an
annual basis as the principal and interest payment amount necessary to
amortize a loan over a 45-year term, not to exceed 3 percent of ex-
vessel value. The fee shall be expressed as a percentage of the ex-
vessel value of all fee fish harvested and landed in the respective
fisheries. In the event that payments made under the Refinanced
Reduction Plan are insufficient to repay a Refinanced Loan within the
45-year term, NMFS shall extend the term of the repayment until the
Refinanced Loan is paid in full.
(1) Collection. The buyer who first purchases the fee fish landed
in a fishery shall be responsible for collecting and submitting the
repayment fees to NMFS monthly. The fees shall be submitted to NMFS no
later than fourteen (14) calendar days following the end of each
calendar month. Fees must be assessed and collected on all fee fish
harvested in the fisheries.
(2) Fee amount. Although the fee could be up to three percent of
the ex-vessel price of all post-refinancing landings, the fee will be
less than three percent if NMFS projects that a lesser rate can
amortize the Refinanced Loan over the 45-year term. To verify that the
fees collected do not exceed 3 percent of the fishery revenues, NMFS
will compare the annual total of principal and interest due with the
latest available annual revenues in the fisheries to ensure that it is
equal to or less than three percent of the total ex-vessel production
revenues. In the event that any of the components necessary to
calculate the next year's fee are not available, or postponed, the fee
will remain at the previous year's amount until such time as new
calculations are made and communicated to the post-refinancing fishery
participants.
(i) If a refinanced fishery does not open during a year, interest
will continue to accrue on the principal balance even though no fee
revenue will be generated. If this happens, when the fishery opens,
NMFS shall increase the fee to the maximum three percent, apply all
subsequent fee revenue first to the payment of accrued interest, and
continue the maximum fee rates until the principal and interest
payments become current. Once all principal and interest payments are
current, NMFS will make a determination about adjusting the fee rate.
(ii) [Reserved]
(3) Recordkeeping and reporting. The dealer who first purchases the
fee fish landed in the fishery shall be responsible for compliance with
the
[[Page 46946]]
applicable recordkeeping and reporting requirements.
(4) All requirements and penalties set forth in the provisions of
Sec. 600.1013 (Fee payment and collection), Sec. 600.1014 (Fee
collection deposits, disbursements, records, and reports), Sec.
600.1015 (Late charges), and Sec. 600.1017 (Prohibitions and
penalties) shall apply to any dealer who purchases fish in the
refinanced reduction fisheries, and to any fee collection under this
section, to the extent they do not conflict with this section or with
subpart M of this part.
(e) Enforcement for failure to pay fees. The provisions and
requirements of Sec. 600.1016 (Enforcement) shall also apply to fish
sellers and fish buyers subject to this fishery.
(f) Prohibitions and penalties. The provisions and requirements of
Sec. 600.1017 shall also apply to fish sellers and fish buyers subject
to this fishery. In addition, fish buyers are prohibited from
purchasing fish from fish sellers who do not pay the required landing
fees. Fish sellers are prohibited from selling to fish buyers who do
not pay the required landing fees.
(g) The provisions of Sec. 600.1102 shall apply to any fee
collection as implemented by the Refinancing Plan to the extent that
they do not conflict with this section or with subpart M of this part.
[FR Doc. 2015-19261 Filed 8-5-15; 8:45 am]
BILLING CODE 3510-22-P
