Fisheries of the Northeastern United States; Scup Fishery; Adjustment to the 2020 Winter II Quota, 56504 [2020-20202]
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Federal Register / Vol. 85, No. 178 / Monday, September 14, 2020 / Rules and Regulations
In opposing the proposal, the ABA
stated that defining a CSA as a ‘‘single
local community’’ is unreasonable and
unlawful. The ABA largely relied on the
District Court opinion, which was
unanimously reversed by the Circuit
Court. The ABA provided examples of
CSAs that it believes might not be a
WDLC and contended that CSAs have a
‘‘daisy-chain nature’’ in which opposite
ends have little connection. It then
stated that the Circuit Court indicated
that some CSAs might not be a WDLC
and thus could be challenged on an ‘‘as
applied’’ basis. The ABA further stated
that the term ‘‘local community’’ should
not automatically include a CSA.
Rather, it stated that any presumption
that a CSA is a local community should
be rebuttable. The ABA further stated
that the Board should not adopt these
provisions while litigation remains
pending, including the possibility of an
appeal to the Supreme Court.
After reviewing the comments in light
of the unanimous Circuit Court decision
to affirm the Board’s adoption of a CSA
as a presumptive community, the Board
has determined that it is appropriate
and consistent with the Act to amend
the Chartering Manual to allow a CSA
to be re-established as a presumptive
WDLC. Much of the ABA’s argument
relied on the District Court decision that
was unanimously rejected by the threejudge Circuit Court panel. In applying
Chevron, the Circuit Court stated: ‘‘We
appreciate the District Court’s
conclusions, made after a thoughtful
analysis of the Act. But we ultimately
disagree with many of them. In this
facial challenge, we review the rule not
as armchair bankers or geographers, but
rather as lay judges cognizant that
Congress expressly delegated certain
policy choices to the NCUA. After
considering the Act’s text, purpose, and
legislative history, we hold the agency’s
policy choices ‘entirely appropriate’ for
the most part. Chevron, 467 U.S. at
865.’’ 63 With respect to CSAs, the
Circuit Court, in rejecting the District
Court’s analysis, stated:
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In addition to being consistent with the
Act’s text, the Combined Statistical Area
definition rationally advances the Act’s
underlying purposes. In the 1998
amendments, Congress made two relevant
findings about purpose. First, legislators
found ‘‘essential’’ to the credit-union system
a ‘‘meaningful affinity and bond among
63 Am. Bankers Ass’n, 934 F.3d at 656. See also
with respect to CSAs: ‘‘The NCUA possesses vast
discretion to define terms because Congress
expressly has given it such power. But the authority
is not boundless. The agency must craft a
reasonable definition consistent with the Act’s text
and purposes; that is central to the review we apply
at Chevron’s second step. Here, the NCUA’s
definition meets the standard.’’ Id. at 664.
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members, manifested by a commonality of
routine interaction [;] shared and related
work experiences, interests, or activities [;] or
the maintenance of an otherwise wellunderstood sense of cohesion or identity.’’
§ 2, 112 Stat. at 914. Second, Congress
highlighted the importance of ‘‘credit union
safety and soundness,’’ because a credit
union on firm financial footing ‘‘will enhance
the public benefit that citizens receive.’’ 64
The Circuit Court explicitly rejected
the ABA’s assertion that CSAs have a
‘‘daisy chain’’ nature, linking multiple
metropolitan areas that have nothing to
do with those at opposite ends of the
chain. As the court stated:
[T]he NCUA’s definition does not readily
create general, widely dispersed regions. Cf.
First Nat’l Bank III, 522 U.S. at 502
(indicating that community credit unions
may not be ‘composed of members from an
unlimited number of unrelated geographical
units’. Combined Statistical Areas are
geographical units well-accepted within the
government. See [81 FR at 88414]. Because
they essentially are regional hubs, the
Combined Statistical Areas concentrate
around central locations. . . . The NCUA
rationally believed that such ‘real-world
interconnections would qualify as the type of
mutual bonds suggested by the term ‘local
community.’ . . . Thus, the agency
reasonably determined that Combined
Statistical Areas ‘‘simply unif[y], as a single
community,’’ already connected neighboring
regions. [See 81 FR at 88,415.] 65
The ABA’s misinterpretation of the
Chevron doctrine was further
repudiated by the entire Circuit Court,
which rejected the ABA’s petition for a
rehearing en banc. The Board
emphasizes that the ABA repeatedly
misstates the regulatory framework for
approving a presumptive community,
both in its court filings and in its
comment letter on the proposed rule.
Under the regulatory provisions in the
Chartering Manual, established by
notice-and-comment rulemaking, there
is no automatic approval of an
application based on a CSA. Rather, an
applicant would have to establish in its
application that it can serve the entire
community, as documented in its
business and marketing plan. A further
constraint on any such CSA or portion
thereof is that its population cannot
exceed 2.5 million people. As the
Circuit Court noted:
We might well agree with the District Court
that the approval of such a geographical area
would contravene the Act. But even so, the
Association would need much more to
mount its facial pre-enforcement challenge in
this case. As the Supreme Court repeatedly
has held, ‘‘the fact that petitioner can point
to a hypothetical case in which the rule
might lead to an arbitrary result does not
64 Id.
65 Id.
PO 00000
at 665–66.
at 666–67.
Frm 00034
Fmt 4700
render the rule’’ facially invalid. Am. Hosp.
Ass’n v. NLRB, 499 U.S. 606, 619 (1991); see
also EPA v. EME Homer City Generation, L.P.
(EME Homer), 572 U.S. 489, 524 (2014) (‘‘The
possibility that the rule, in uncommon
particular applications, might exceed [the
agency]’s statutory authority does not
warrant judicial condemnation of the rule in
its entirety.’’); INS v. Nat’l Ctr. for
Immigrants’ Rights, Inc., 502 U.S. 183, 188
(1991) (‘‘That the regulation may be invalid
as applied in s[ome] cases . . . does not
mean that the regulation is facially invalid
because it is without statutory authority.’’);
cf. Barnhart v. Thomas, 540 U.S. 20, 29
(2003) (‘‘Virtually every legal (or other) rule
has imperfect applications in particular
circumstances.’’).
Here, the Association’s complaint and
the District Court’s accompanying worry
strike us as too conjectural. The NCUA
must assess the ‘‘economic advisability
of establishing’’ the proposed credit
union before approving it, [12 U.S.C.
1754], and as part of the assessment, the
organizers must propose a ‘‘realistic’’
business plan showing how the
institution and its branches would serve
all members in the local community, see
[12 CFR. part 701, app. B, ch. 1 section
IV.D.] The Association has failed to
demonstrate the plausibility of a local
community that is defined like the
hypothetical narrow, multi-state strip
and accompanies a realistic business
plan. And if the agency were to receive
and approve such an application, a
petitioner can make an as-applied
challenge. See, e.g., EME Homer, 572
U.S. at 523–24; Buongiorno, 912 F.2d at
510.66
Thus, existing regulatory provisions
guard against the extreme examples
posited by the ABA, which claims
incorrectly that the Board must approve
them under the Chartering Manual. The
Board agrees with the ABA and the
Circuit Court that any application for a
presumptive community, including one
based on a CSA, can be challenged on
an as applied, case-by-case basis. Given
this regulatory framework, which is
subject to judicial review, the Board
agrees with the Circuit Court’s reasoning
in concluding that re-establishing the
CSA as a presumptive community is
entirely consistent with the express
authority delegated to the Board by
Congress. This provision also advances
the Act’s dual purposes of promoting
common bonds while addressing safety
and soundness considerations by
ensuring that FCUs remain
economically viable.
66 Id.
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at 668.
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Agencies
[Federal Register Volume 85, Number 178 (Monday, September 14, 2020)]
[Rules and Regulations]
[Page 56504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20202]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 648
[Docket No. 200420-0118]
[RTID 0648-XA453]
Fisheries of the Northeastern United States; Scup Fishery;
Adjustment to the 2020 Winter II Quota
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Temporary rule; in-season adjustment.
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SUMMARY: NMFS adjusts the 2020 Winter II commercial scup quota and per-
trip Federal landing limit. This action is necessary to comply with
Framework Adjustment 3 to the Summer Flounder, Scup, and Black Sea Bass
Fishery Management Plan that established the rollover of unused
commercial scup quota from the Winter I to Winter II period. This
notice is intended to inform the public of this quota and trip limit
change.
DATES: Effective October 1, 2020, through December 31, 2020.
FOR FURTHER INFORMATION CONTACT: Laura Hansen, Fishery Management
Specialist, (978) 281-9225; or [email protected].
SUPPLEMENTARY INFORMATION: NMFS published a final rule for Framework
Adjustment 3 to the Summer Flounder, Scup, and Black Sea Bass Fishery
Management Plan in the Federal Register on November 3, 2003 (68 FR
62250), implementing a process to roll over unused Winter I commercial
scup quota (January 1 through April 30) to be added to the Winter II
period quota (October 1 through December 31) (50 CFR 648.122(d)). The
framework also allows adjustment of the commercial possession limit for
the Winter II period dependent on the amount of quota rolled over from
the Winter I period. The Winter II period start date was changed from
November 1 to October 1 as a part of Framework Adjustment 12 (83 FR
17314; April 19, 2018).
For 2020, the initial Winter II quota is 3,543,336 pounds (lb)
(1,607 metric tons (mt)). The best available landings information
indicates that 4,850,963 lb (2,200 mt) remain of the 10,027,597 lb
(4,548 mt) Winter I quota. Consistent with Framework 3, the full amount
of unused 2020 Winter I quota is being transferred to Winter II,
resulting in a revised 2020 Winter II quota of 8,394,299 lb (3,808 mt).
Because the amount transferred is between 4.5 and 5.0 million lb (2,041
mt and 2,268 mt), the Federal per trip possession limit will increase
from 12,000 lb (5.4 mt) to 24,000 lb (10.9 mt), as outlined in the
final rule that established the possession limit and quota rollover
procedures for this year, published on May 15, 2020 (85 FR 29345).
Classification
NMFS issues this action pursuant to section 305(d) of the Magnuson-
Stevens Act. This action is required by 50 CFR 648.122(d), which was
issued pursuant to section 304(b), and is exempted from review under
Executive Order 12866.
Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior
notice and an opportunity for public comment on this action, as notice
and comment would be contrary to the public interest. This action
transfers unused quota from the Winter I Period to the Winter II Period
to make it accessible to the commercial scup fishery. If implementation
of this inseason action is delayed to solicit prior public comment, the
objective of the fishery management plan to achieve the optimum yield
from the fishery could be compromised. Deteriorating weather conditions
during the latter part of the fishing year may reduce fishing effort,
and could also prevent the annual quota from being fully harvested.
This would conflict with the agency's legal obligation under the
Magnuson-Stevens Fishery Conservation and Management Act to achieve the
optimum yield from a fishery on a continuing basis, resulting in a
negative economic impact on vessels permitted to fish in this fishery.
Moreover, the rollover process being applied here was the subject of
notice and comment rulemaking, and the range of potential trip limit
changes were outlined in the final 2018 scup specifications that were
published December 22, 2017; which were developed through public notice
and comment. Based on these considerations, there is good cause under 5
U.S.C. 553(d)(3) to waive the 30-day delayed effectiveness period for
the reasons stated above.
Authority: 16 U.S.C. 1801 et seq.
Dated: September 9, 2020.
Jennifer M. Wallace,
Acting Director, Office of Sustainable Fisheries, National Marine
Fisheries Service.
[FR Doc. 2020-20202 Filed 9-11-20; 8:45 am]
BILLING CODE 3510-22-P