[Federal Register Volume 84, Number 242 (Tuesday, December 17, 2019)]
[Rules and Regulations]
[Pages 68799-68814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27074]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 660
[Docket No. 191211-0107]
RIN 0648-BI35
Magnuson-Stevens Act Provisions; Fisheries Off West Coast States;
Pacific Coast Groundfish Fishery; Pacific Whiting; Pacific Coast
Groundfish Fishery Management Plan; Amendment 21-4; Catch Share
Program, 5-Year Review, Follow-On Actions
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Final rule.
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SUMMARY: This rule implements changes to the Pacific Coast Groundfish
Trawl Catch Share Program identified during the Catch Share Program 5-
Year Review. This action is intended to modify outdated regulations,
complete outstanding program elements, and respond to problems
identified following implementation of the Catch Share Program. This
action revises regulations consistent with Amendment 21-4 to the
Pacific Coast Groundfish Fishery Management Plan, and revises elements
in four areas of the Catch Share Program.
DATES: This final rule is effective January 16, 2020.
ADDRESSES: Electronic copies of supporting documents referenced in this
final rule, including the Categorical Exclusions (CE) and final
regulatory flexibility analysis (FRFA), are available from
www.regulations.gov or from the NMFS West Coast Region Groundfish
Fisheries website at http://www.westcoast.fisheries.noaa.gov/fisheries/groundfish/index.html.
FOR FURTHER INFORMATION CONTACT: Colin Sayre, phone: 206-526-4656, or
email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Summary of Regulations
A. At-Sea Whiting Fishery Set-Aside Bycatch Management
B. Shorebased IFQ Trawl Sector Quota Transfers
C. Catcher Processor Permit Accumulation Limits
D. New Data Collections
1. C/P Endorsed Permit Ownership Interest
2. Quota Share Permit Owner Participation and Economic Data
E. Clarifications to Cost Recovery Regulatory Text
F. Technical Corrections
III. Comments and Responses
IV. Changes From the Proposed Rule
V. Classification
I. Background
On January 1, 2011, NMFS implemented the Pacific Coast Groundfish
Trawl Catch Share Program (Catch Share Program) through Amendment 20
and Amendment 21 (75 FR 60867; October 1, 2010) to the Pacific Coast
Groundfish Fishery Management Plan (FMP). Amendment 20 established a
limited entry Individual Fishing Quota (IFQ) system for shorebased
trawl vessels and cooperatives for the at-sea Pacific whiting
mothership (MS) and catcher-processor (C/P) sectors. The Catch Share
Program was intended to increase net economic benefits and create
individual economic stability for trawl fishery participants, provide
full utilization of the trawl sector allocation, and achieve individual
accountability for catch and bycatch in the Pacific Coast groundfish
fishery. Amendment 21 established fixed allocations for limited entry
trawl participants. These allocations were intended to improve fishery
management under the Catch Share Program by streamlining its
administration, providing stability to the fishery, and addressing
bycatch.
[[Page 68800]]
After implementation in 2011, NMFS collected both baseline and
annual socioeconomic data to judge the effectiveness of the Catch Share
Program for the 5-Year Review, and collected data annually thereafter,
as required under the Magnuson-Stevens Fishery Conservation and
Management Act (Magnuson-Stevens Act). To aid in reviewing and refining
the Catch Share Program, the Council appointed the Community Advisory
Board (CAB) to provide the perspective of fishing communities on Catch
Share Program performance, potential improvements, and other advice at
the Council's request to inform the program review and develop follow-
on actions.
Socioeconomic data collections and input from the CAB helped to
inform the 5-Year Review of the Catch Share Program, which the Council
approved in November 2017. From the findings of the 5-Year Review, the
Council identified a range of potential follow-on actions in four areas
of the Catch Share Program to refine and enhance the program. These
follow-on actions are being implemented through Amendment 21-4, which
includes an FMP amendment as well as the regulatory changes in this
final rule.
Additional discussion of the background and rationale for the
Council's development of Amendment 21-4 and the Catch Share Program 5-
Year Review is included in the proposed rule for this action (84 FR
54561; October 10, 2019) and is not repeated here. Detailed
information, including the supporting documentation the Council
considered while developing these recommendations, is available at the
Council's website, www.pcouncil.org.
The measures in this final rule will: Allow the at-sea whiting
sector to more fully and efficiently harvest its allocation through
flexible set-aside management of constraining bycatch species; improve
utilization of individual fishing quota (IFQ) and overall economic
efficiency for the shorebased IFQ trawl sector; ensure fair and
equitable access to resources in the event of failure or voluntary
dissolution of the at-sea Pacific whiting catcher-processor (C/P)
cooperative agreement; and provide a more robust evaluation of Catch
Share Program performance. This action also includes clarifying non-
substantive changes to the regulatory language for the Catch Share Cost
Recovery Program.
Concurrent with these regulatory changes, an amendment to the
Pacific Coast Groundfish FMP is required to implement Amendment 21-4 as
recommended by the Council. The FMP amendment will implement at-sea
set-aside bycatch management by removing from the FMP fixed formulas
used to determine (1) bycatch allocations of widow rockfish, and (2)
set-aside amounts of darkblotched rockfish and Pacific Ocean perch
(POP). Set-aside amounts would instead be determined through the
biennial harvest specifications process. On August 30, 2019, NMFS
published a Notice of Availability (NOA) in the Federal Register (84 FR
45706) to solicit public comment on the proposed FMP amendment. No
public comments on the proposed amendment were received during the
comment period. NMFS is approving the FMP amendment concurrent with
this final rule.
II. Summary of Regulations
A. At-Sea Whiting Fishery Set-Aside Bycatch Management
This final rule changes management for bycatch of four species in
the at-sea Pacific whiting C/P and MS sectors: Canary rockfish, widow
rockfish, darkblotched rockfish and POP. Instead of being managed
through the use of capped bycatch allocations, canary rockfish and
widow rockfish bycatch will be managed as ``set-asides,'' which are an
expected amount of bycatch deducted from the total trawl sector
allocations for these species. At-sea bycatch of darkblotched rockfish
and POP were previously converted from bycatch allocations to set-
asides in Amendment 21-3 (83 FR 757; January 8, 2018). The Council will
recommend set-aside amounts for darkblotched rockfish, POP, canary
rockfish, and widow rockfish during the biennial harvest specifications
and management measures process.
These changes provide NMFS and the Council increased flexibility to
determine set-asides amounts during the biennial harvest
specifications. NMFS is not required to take action to close the at-sea
sectors if catch exceeds the set-aside amounts for these four bycatch
species. However, the Council and NMFS retain authority to implement a
routine inseason action (e.g., a time or area closure) if catch of any
species exceeds its set-aside amount with the risk of exceeding harvest
specifications, having unforeseen impact on another fishery, or causing
other conservation concerns. This final rule will provide the at-sea
sectors greater economic opportunity, even in the event bycatch of
these rockfish species exceeds expected levels. This action would help
ensure the at-sea sectors can fully attain their Pacific whiting
allocations by establishing bycatch set-asides which, when reached, do
not require automatic fishery closure. This action would also allow the
Council to adjust at-sea bycatch set-asides for the whiting fishery on
a biennial basis to match expected bycatch levels with prevailing
fishery conditions.
B. Shorebased IFQ Trawl Sector Quota Transfers
This final rule provides participants in the shorebased IFQ sector
a post-season transfer period to cover quota pound (QP) deficits from
the prior year with unused or surplus QP remaining from the same year.
Unused QP will be transferable only for the purpose of covering a
deficit remaining from the previous year. Each year, post-season QP
transfers will be permitted from January 1 until March 14, and NMFS
will provide advance public notice announcing the ending date of the
post-season transfer period. At the end of the post-season transfer
period, NMFS will complete end-of-the-year Quota Share (QS) account
reconciliation, and issue remaining surplus QP as carryover QP. Quota
issued for the current year may also be used to cover any prior-year
deficits which remain following the post-season transfer period.
In covering a previous year's deficit, participants in the
shorebased IFQ sector will not be restricted by annual vessel QP limits
under this final rule. These limits restrict the total amount of QP a
vessel may acquire in a single year. Removing the annual vessel QP
limit restriction during the post-season transfer period provides
relief to vessels that experience unexpected large bycatch events,
known as ``lightning-strikes,'' which have, in the past, exceeded
annual vessel QP limits. Under this action, vessels with deficit
amounts over annual vessel QP limits could acquire sufficient QP to
cover the entire deficit through post-season trading, or by using QP
issued in the following year. This action will remove the annual vessel
QP limits only when covering deficits in the following year. While
Catch Share Program participants would no longer be limited by the
annual vessel QP limits in curing deficits, they would violate the
carryover regulations if the deficit exceeds the deficit carryover
limit. The deficit carryover limit is the amount of deficit QP that a
vessel may carry into the following fishing year without violating QP
carryover regulations. Under this action, vessel owners may experience
regulatory consequences for a QP deficit, but will avoid economic
hardship as a result of not fishing for multiple years while covering a
large deficit under annual vessel QP limits.
[[Page 68801]]
This final rule also eliminates the September 1 deadline to
transfer QP from QS account to a vessel account. Under this action, QP
will remain in a QS account and available for transfer to a vessel
account for fishing until December 31 of each year for which the QP was
issued. The QP that remains in a QS account will be available for post-
season trading once transferred to a vessel account after January 1 in
the following year, and will not expire until the end of the post-
season transfer period.
This action will reduce the overall costs of participation in the
Shorebased IFQ sector by ensuring the maximum amount of annual IFQ
allocations are used to harvest fish, rather than to cover previous
year's QP deficits.
This action would allow fishery participants to cover the previous
year's quota deficits with unused quota from the previous year. This
would ensure that, each year, newly issued quota is used to cover catch
rather than to cover outstanding deficits, which should maximize the
value of quota and its efficient utilization.
C. Catcher-Processor Permit Accumulation Limits
This final rule establishes a permit accumulation limit of five at-
sea Pacific whiting C/P-endorsed permits that any one person or entity
may own or control, and includes regulations that define ``own and
control'' as it relates to C/P-endorsed permits. The five-permit
accumulation limit will take effect only in the event the current at-
sea Pacific whiting C/P cooperative fails. When the Catch Share Program
was implemented, the Council included a provision that would establish
an IFQ program for the at-sea C/P sector should the cooperative
agreement fail. This final action includes procedures for determining
cooperative failure, and for divestiture of excess permits preceding
conversion to an IFQ system.
In the event the C/P-cooperative voluntarily dissolves, or NMFS
determines the cooperative agreement has failed, NMFS will announce a
divestiture period starting on the date cooperative failure has been
determined, and ending on the date an IFQ program is implemented for
the at-sea C/P sector or another date specified in the IFQ program
implementing regulations. During the divestiture period any individual
or entity that owns or controls more than five permits may divest of
those permits by sale or trade, or voluntarily abandon permits and
allow redistribution of associated QS. After an IFQ-based C/P fishery
is implemented, no individual or entity may own or control more than
five C/P-endorsed permits, and no person or entity may own or control
any quota associated with permits in excess of the five-permit limit.
Following implementation of an at-sea C/P IFQ program, NMFS may revoke
any C/P-endorsed permits in excess of the accumulation limit and may
redistribute associated QS to other C/P-endorsed permit owners. The
current C/P cooperative agreement ensures no individual acquires
excessive access privileges to at-sea Pacific whiting resources.
However, this action is necessary to ensure fair and equitable access
to fishery resources in the absence of the cooperative agreement in the
event it voluntarily dissolves or fails.
D. New Data Collections
1. C/P Endorsed Permit Ownership Interest
This final rule establishes an information collection for C/P-
endorsed permit owners. The Catch Share Program requires mandatory
submission of permit ownership interest information from catcher-
vessels and motherships. During annual permit application and renewal,
C/P-endorsed permit owners in those sectors are required to submit a
Trawl Identification of Ownership Interest form. NMFS collects this
information to enforce catcher-vessel accumulation limits and
mothership sector accumulation limits that ensure no individual, or
entity, obtain excessive limited access privileges. This action
establishes the requirement that at-sea C/P-endorsed permit owners also
complete the Trawl Identification of Ownership Interest form annually
during permit renewal. The form is used to collect basic trawl vessel
or permit owner information, such as vessel name, permit number, owner
name and legal address, and the names and addresses of other
individuals and entities that have an ownership interest and percentage
of ownership for the vessel or permit. The information on the C/P
sector collected in this form will support future Council decisions in
the event accumulation limits take effect for the at-sea C/P sector as
described in section II, part C of this preamble.
2. Quota Share Permit Owner Participation and Economic Data
This final rule requires all QS permit owners to submit annual
information to the NMFS Northwest Fisheries Science Center West Coast
Economic Data Collection (EDC) Program through a Quota Share Permit
Owner survey. All QS permit owners, including those QS permit owners
that do not also own, lease, or charter a vessel, shorebased processor,
or first/receiver site, must submit information on annual participation
in the fishery, as well as costs and earnings related to QS permit
ownership. This survey will be collected electronically via web-form
during the online QS permit application and renewal process. The
deadline for submitting this information will be November 30 of each
year, to align with timing of submission for QS permit application and
renewals. Information collected through this survey will provide NMFS
and the Council with a better understanding of economic costs and
benefits conferred to fishery dependent communities through QS permit
ownership, and of overall Catch Share Program performance. Improved
evaluation of Catch Share Program performance will support sustained
fishing community participation in the program, and help minimize
adverse economic impacts on fishing communities. This action
accomplishes these objectives by collecting information on economic
benefits tied to QS ownership and community linkage of QS permit
owners. This information will be used to ensure the Catch Share Program
provides maximum economic benefits to participating communities.
E. Clarifications to Cost Recovery Regulatory Text
On March 20, 2014, NMFS published a Public Notice (NMFS-SEA-14-12)
discussing two clarifications to the Pacific Coast Groundfish Trawl
Rationalization Cost Recovery Program that went into effect in January
2014 (78 FR 75268; December 11, 2013). This final rule implements
regulatory language necessary to reflect these two program
clarifications. The first adjustment clarifies that the deposit
principal may be used to refund cost recovery payments made by credit
card through Pay.gov. The second clarification specifies that in the C/
P sector retained fish only, and not discards, are used in calculating
ex-vessel revenue as it relates to determining cost recovery fees.
F. Technical Corrections
In addition to necessary regulatory changes to implement the
Council's recommendations, this final rule also includes minor
technical corrections. Specifically, these minor technical corrections
remove obsolete baseline dates included during implementation of the
Catch Share Program, such as the years when initial trawl allocations
[[Page 68802]]
were issued, the first date on which quota transfers were permitted,
and the dates when economic data collections were initiated.
III. Comments and Responses
NMFS solicited public comment on the proposed rule implementing the
Amendment 21-4 follow-on actions on October 10, 2019 (84 FR 54561). The
comment period ended October 29, 2019. NMFS received one public comment
letter on behalf of the Pacific Whiting Conservation Cooperative during
the comment period for the proposed rule. The four unique comments
within that comment letter are summarized and addressed below. Public
comment letters, and attached documents, can be viewed, along with the
proposed and final rules for this action at www.regulations.gov.
Comment 1: NMFS received one comment of support for various aspects
of the proposed rule, including the proposed changes for at-sea set-
aside bycatch management, C/P-endorsed permit ownership interest
information collection, and cost recovery program clarifications.
Response: NMFS notes this support.
Comment 2: The language of the proposed rule mischaracterized
Community Advisory Board (CAB) and Groundfish Advisory Panel (GAP)
opposition to the C/P permit accumulation limits during development.
Response: In the proposed rule, NMFS did not intend to imply the
CAB or GAP suggested or supported the decision to set C/P permit
accumulation limits. The background information presented in the
proposed rule is a generalized overview of the timeline and issues
selected for development under this action. The proposed rule did not
elaborate on the stance of Council advisory bodies, and only stated
that these advisory bodies provided input and recommendations. The
Council included C/P-permit accumulation limits as part of the follow-
on actions. The full record of decision making during the Council
process is publicly available on the Council's website
www.pcouncil.org/council-operations/council-meetings/past-meetings/.
Comment 3: The proposed rule should not set C/P permit accumulation
limits, as the current C/P cooperative structure fulfills Magnuson-
Stevens Act requirements that no individual obtain excessive access
privileges to fishery resources.
Response: This action does not set accumulation limits for the
current cooperatively managed C/P sector, restrict permit transfer
between C/P cooperative members, or limit permit ownership under the
present cooperative structure of the C/P sector. NMFS acknowledges that
the current cooperative structure of the C/P sector fulfills
requirements under section 303A(c)(5)(D) of the Magnuson-Stevens Act
that limited access privilege holders do not acquire an excessive share
of the total limited access shares in the groundfish program. However,
a limit would be required in the event the C/P cooperative agreement
does not form in a given year, the cooperative voluntarily dissolves,
or the cooperative structure fails. The Council determined that, if the
current cooperative structure fails or dissolves, limiting permit
ownership to five C/P-endorsed permits an individual or entity may own
or control will result in an equitable concentration of limited access
privileges for Pacific whiting resources.
Comment 4: The proposed rule lacks clarification on the process and
information the NMFS Regional Administrator (RA) would use to make an
independent determination of C/P cooperative failure. The proposed rule
lacks a specific appeals process in the event NMFS makes an independent
determination of cooperative failure.
Response: Under existing regulations, the NFMS RA already has
authority to make an independent determination of C/P cooperative
failure based on factual information. The language for this provision
was first discussed during the Council meetings in March and April
2010. The language for this provision was included in the proposed rule
for Amendments 20 and 21 to the Pacific Coast Groundfish FMP (75 FR
53380; August 31, 2010) and implemented through the final rule for
Amendment 20 and 21 (75 FR 78344; December 15, 2010).
Under these existing regulations at Sec. 660.160(h)(1)(i) through
(iv), NMFS has the authority to make an independent determination of C/
P cooperative failure in the event any of the following occurs: (i) Any
current C/P-endorsed limited entry trawl permit is not identified as a
C/P cooperative (coop) member in the coop agreement submitted to NMFS
during the C/P coop permit application process; (ii) Any current C/P-
endorsed permit withdraws from the C/P coop agreement; (iii) The coop
members voluntarily dissolve the coop; or (iv) The coop agreement is no
longer valid. This final rule implementing Amendment 21-4 does not make
any changes to the conditions necessary for determining cooperative
failure as already included in the regulations. If NMFS were to
determine cooperative failure, the C/P cooperative permit would no
longer be considered valid. Prior to making a final determination of
cooperative failure, and the C/P cooperative permit becoming no longer
valid, NMFS would use the Initial Administrative Determination (IAD)
process to provide an explanation for this determination, consistent
with the regulations at Sec. 660.25(b)(1)(v). The IAD is a formal
written determination that is subject to an appeal within NMFS.
Although the C/P cooperative permit is not considered a limited entry
permit, regulations at Sec. 660.160(d)(2) state that the IAD for a C/P
cooperative permit follows the same process as specified for limited
entry permits at Sec. 660.25(g). This existing process includes
procedures for appeals in the case that NMFS makes an independent
determination of cooperative failure. NMFS notes that each year since
the implementation of Amendment 20 and 21, the C/P cooperative manager
has consistently submitted a complete cooperative application and
agreement, and has notified NMFS of the C/P cooperative's intentions
and any material changes to the cooperative agreement.
NMFS acknowledges the utility of an appeals process specific to the
determination of C/P cooperative failure. However, establishing such a
provision through this action is outside the scope of the Council
recommendation, and beyond the scope of this action. We suggest the
appropriate forum to address establishment of a specific appeals
process is through the Council process, or in discussion for the next
Catch Share Program 5-Year Review, which will begin in 2022.
IV. Changes From Proposed Rule
NMFS did not make any changes from the proposed rule. As such, the
regulations provided in this final rule are unchanged from those
published in the proposed rule.
V. Classification
Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the
NMFS Assistant Administrator has determined that this action is
consistent with the Pacific Coast Groundfish FMP, other provisions of
the Magnuson-Stevens Act, and other applicable law.
The Office of Management and Budget has determined that this final
rule is not significant for purposes of Executive Order 12866.
This final rule is not an Executive Order 13771 regulatory action
because this action is not significant under Executive Order 12866.
[[Page 68803]]
This final rule does not contain policies with Federalism or
``takings'' implications as those terms are defined in Executive Order
13132 and Executive Order 12630, respectively.
This action is categorically excluded from the requirement to
prepare an environmental assessment or environmental impact statement
in accordance with section 4 of NOAA's Policies and Procedures for
Compliance with the National Environmental Policy Act (NEPA) and
Related Authorities (Companion Manual for NAO 216-6A). Per section 4B
of the Manual, a categorical exclusion (CE) evaluation document has
been prepared that evaluates the applicability of the CE.
NMFS prepared a final regulatory flexibility analysis (FRFA) under
section 604 of the Regulatory Flexibility Act (RFA), which incorporates
the initial regulatory flexibility analysis (IRFA) prepared during the
proposed rule stage. A copy of the FRFA and CE memo are available from
NMFS (see ADDRESSES), and, as per the requirements of 5 U.S.C. 604(a),
the text of the FRFA follows.
Final Regulatory Flexibility Analysis
For any rule subject to notice and comment rulemaking, the RFA
requires Federal agencies to prepare, and make available for public
comment, both an initial and final regulatory flexibility analysis,
unless the agency can certify that the proposed and/or final rule would
not have a significant economic impact on a substantial number of small
entities. These analyses describe the impact on small businesses, non-
profit enterprises, local governments, and other small entities as
defined by the RFA (5 U.S.C. 603). This analysis is to inform the
agency and the public of the expected economic effects of the
alternatives, and aid the agency in considering any significant
regulatory alternatives that would accomplish the applicable objectives
and minimize the economic impact on affected small entities. The RFA
does not require that the alternative with the least cost or with the
least adverse effect on small entities be chosen as the preferred
alternative.
The need for and objective of this final rule is described above in
section I ``Background'' of this preamble and not repeated here.
A Statement of the Significant Issues Raised by the Public Comments in
Response to the IRFA
No public comments were received in response to the IRFA.
The Response of the Agency to Any Comments Filed by the Chief Counsel
for Advocacy in Response to the Final Rule
No agency response was required, as no comments were received.
A Description and, Where Feasible, Estimate of the Number of Small
Entities to Which the Final Rule Will Apply
The RFA (5 U.S.C. 601 et seq.) requires government agencies to
assess the effects that regulatory alternatives would have on small
entities, defined as any business/organization independently owned and
operated, not dominant in its field of operation (including its
affiliates). A small harvesting business has combined annual receipts
of $11 million or less for all affiliated operations worldwide (50 CFR
200.2).
A small fish-processing business is one that employs 750 or fewer
persons for all affiliated operations worldwide. NMFS is applying this
standard to C/Ps for the purposes of this rulemaking, because these
vessels earn the majority of their revenue from selling processed fish.
For marinas and charter/party boats, a small business is one that
has annual receipts not in excess of $7.5 million. A wholesale business
servicing the fishing industry is a small business if it employs 100 or
fewer persons on a full[dash]time, part[dash]time, temporary, or other
basis, at all its affiliated operations worldwide.
For the purposes of this rulemaking, a nonprofit organization is
determined to be not dominant in its field of operation if it is
considered small under one of the following SBA size standards:
Environmental, conservation, or professional organizations. These
organizations are considered small if they have combined annual
receipts of $15 million or less, and other organizations are considered
small if they have combined annual receipts of $7.5 million or less.
The RFA defines small governmental jurisdictions as governments of
cities, counties, towns, townships, villages, school districts, or
special districts with populations of less than 50,000.
This rule will impact quota share owners. 22 non-whiting quota
share permit owners are estimated, based on holdings of first receiver
permit affiliation in the non-public West Coast Region permits
database, to be primarily engaged in seafood product preparation and
packaging. According to the size standard defined above, three of the
entities that own three of these permits are considered small. These
small processing entities were issued 1.7 percent of the non-whiting
quota pounds issued in 2018, the most recent year available. Some of
these small processing entities also own groundfish permits, required
on both catcher vessels and catcher processors, which would be
regulated by the final rule; three small entities primarily engaged in
seafood processing own two groundfish permits. 30 groundfish vessel
permits are owned by seven entities that are considered large, as
estimated using the definition above, as well as self-reported on
groundfish permits and first receiver site license permits (self-
reported using the definition above). Six of these seven large
processing entities were issued 10.2 percent of the non-whiting quota
pounds issued in 2018 across sixteen quota share permits.
Entities that are not registered as trusts, estates, governments,
or non-profits are assumed to earn the majority of their revenue from
commercial fishing. The definition above is thus used for 124 quota
share permit owners, who collectively received 76.5 percent of the
quota pounds issued in 2018. Limited entry groundfish vessels are
required to self-report size across all affiliated entities; of the
businesses who earn the majority of their revenue from commercial
fishing, one self-reported as large. This entity owns four groundfish
permits and one quota share permit. 118 trawl permits are owned by 117
commercial fishing entities in 2019; 5 of these entities self-reported
as large. Although many groundfish trawl permit owners also own quota
share, it is not possible with available data to tabulate unique
ownership across quota share and groundfish permits, so the numbers
provided here likely overestimate the number of entities impacted.
According to the public IFQ Account database, as of June 19, 2018,
the City of Monterey owns quota shares of ten species. The U.S. Census
estimates the population to be 28,454 as of July 1, 2017, so the City
of Monterey would be considered a small governmental jurisdiction by
the RFA standard described above. The City of Monterey received 0.5
percent of the quota pounds issued for 2018, according to the public
IFQ Account database.
According to the public IFQ Account database, six not-for-profit
organizations own quota share in the Catch Share Program and would thus
be impacted by the trawl sector allocation under this proposed rule.
Five of these would be considered small by the definition above (having
2016 annual receipts as reported on IRS form 990 of $120-500 thousand
dollars), and one would be
[[Page 68804]]
considered large (having self-reported fiscal year 2017 receipts of
$1.1 billion). Collectively, the five small not-for-profit
organizations received 7.2 percent of the non-whiting \1\ quota pounds
issued in 2018, and the large not-for-profit organization received 0.5
percent. The large not-for-profit organization owned two limited entry
trawl permits which would be impacted by the management measures of the
rule. The small not-for-profits owned 3 such permits.
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\1\ Whiting allocations are issued annually through a separate
rulemaking process resulting from international treaty negotiations.
See 83 FR 22401, May 15, 2018, for more information and 2018
allocations.
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11 personal or family trusts/estates own quota share permits and
would thus potentially be impacted by the trawl sector allocation under
this proposed rule. All of these are assumed to be smaller than the
small entity size standard described above. Collectively, these eight
small entities received 4.2 percent of the non-whiting quota pounds
issued for 2018. Five of these entities owned five groundfish permits.
Reporting and Recordkeeping Requirements
This action changes two information collection requirements.
C/P Endorsed Permit Ownership Interest Form
The modifications include requiring C/P endorsed permit owners to
complete Trawl Owner Identification of Interest forms during annual
permit renewal under OMB Control Number 0648-0620.
Currently there are 10 C/P endorsed permits approved by NMS in the
Catch Share Program. These permits are held by three companies with no
single company owning more than five permits. As each company is a
controlling entity, three is the minimum number of affected entities
that would be expected to submit one Trawl Identification of Ownership
Interest form for each C/P endorsed permit. The public reporting burden
is expected to require approximately 3.5 minutes for each respondent to
complete one form for each permit once per year during C/P endorsed
permit renewal. Each form is estimated to cost $0.35 to copy, and is
included when mailed with other application forms. The 10 new
respondents would add a total of $3.50 annual burden costs.
Economic Data Collection From Quota Share Permit Owners
The action would require changes to the Catch Share Program West
Coast Economic Data Collection OMB Control Number 0648-0618. The
proposed rule would change reporting requirements for owners of Quota
Share permits to submit appropriate forms to the West Coast Economic
Data Collection. The EDC currently does not require submission of forms
from owners of Quota Share permits who do not also own, lease or
charter vessels. The final rule would add a requirement for submission
of EDC forms from all participants who own a Quota Share permit,
including those who do not otherwise participate in the fishery other
than owning a Quota Share permit.
Based on EDC response data and the public permit database, the
public reporting burden for this requirement is expected to include
approximately 178 Quota Share permit owners, of which approximately 158
currently complete EDC forms because they own, lease or charter
vessels. The new requirement would include in the EDC collection an
additional 20 respondents who are QS permit owners but are not owners,
charterers, or lessees of vessels, shorebased processors, or first
receiver sites and as a result do not complete any EDC forms. The new
QS Permit owner survey is expected to take approximately 1 hour per
year for all respondents to complete.178 respondents will each require
approximately 1 hour once a year to complete QS permit owner survey
questions. As a result 178 hours will be added to the current EDC
burden of 2,224 hours, the new public burden will be a total of 2,402.
(158 participants across the three vessel groups [catcher vessels,
catcher processers and motherships] each need 8 hours to complete the
EDC forms, for a total of 1,264 hours, and 20 hours is estimated for
the 48 first receiver/shorebased processor form, for a total of 960
hours. 178 QS permit owners across all categories will require 1 hour,
for a total of 178 hours. As a result, one year of data collection will
require a total of 2,224 hours to complete the forms.) Costs associated
with this reporting requirements are related to making copies of EDC
documents (survey respondents are requested to retain a copy of the
completed EDC form) and mailing the surveys. The annual cost associated
with these activities is assumed to be $0.20 per respondent, assuming
that the form is sent via certified mail. Total annual costs for all
respondents is currently $4,120 (206 x $20). 22 new respondents will
add an additional cost of $36.0, for a new total annual cost of $4,156
[(206 x $20) + (178 x $0.20)] for all respondents.
Description of Significant Alternatives to This Final Rule That
Minimize Economic Impacts on Small Entities
This rule is not expected to result in adverse impacts to small
entities. Thus, there are no significant alternatives to the proposed
rule that would minimize adverse economic impacts on small entities.
The Council did consider alternatives to the final rule which would
have had a lower level of benefits to small entities. The Council did
not consider alternatives that would have had greater benefits to small
entities, as these would not have been consistent with other applicable
laws.
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. As part of this rulemaking process, a small
entity compliance guide (the guide) was prepared. Copies of this final
rule are available from the West Coast Regional Office (see ADDRESSES),
and the guide will be included in a notice sent to all members of the
groundfish email group. To sign-up for the groundfish email group,
click on the ``subscribe'' link on the following website: http://www.westcoast.fisheries.noaa.gov/publications/fishery_management/groundfish/public_notices/recent_public_notices.html. The guide and
this final rule will also be available on the West Coast Region's
website (see ADDRESSES) and upon request.
Paperwork Reduction Act (PRA) Recordkeeping and Reporting Requirements
This action contains changes to two information collection
requirements, described in section II, part D of this final rule, which
have been approved by the Office of Management and Budget (OMB). The
first change, under OMB Control Number 0648-0618, West Coast Groundfish
Trawl Economic Data Collection, requires any owner of a QS permit to
submit annual economic information related to QS ownership. This is a
change from previous regulations that required collection of economic
information only from QS
[[Page 68805]]
permit owners that also own, lease, or charter, vessels, shorebased
processors, or first receiver sites. This change will affect an
estimated 178 QS permit owners, and require 1 hour per year for each
respondent. Costs associated with this collection are $0.20 per survey
for respondents to retain a copy of the survey for their records, which
will increase the total cost to public by $35.60.
The second change in collection requirements, under OMB Control
Number 0648-0620, Pacific Coast Groundfish Trawl Rationalization
Program Permit and License Information Collection, requires C/P
endorsed permit owners to submit Trawl Interest of Ownership forms
during annual permit renewal. This is a change from previous
requirements for the collection of annual ownership interest
information from only mothership and catcher-vessel permit owners. This
change will affect three fishing companies that own the ten existing C/
P endorsed permits. Respondents will require approximately 45 minutes
per permit to complete the form in the first year, and 3 minutes per
permit in subsequent years. Mailing and copy costs of $0.35 per form
will increase the total cost to public by $3.50.
Executive Order 13175
Pursuant to Executive Order 13175, this final rule was developed
after meaningful collaboration with tribal officials from the area
covered by the FMP. Consistent with the Magnuson- Stevens Act at 16
U.S.C. 1852(b)(5), one of the voting members of the Council is a
representative of an Indian tribe with federally recognized fishing
rights from the area of the Council's jurisdiction.
List of Subjects in 50 CFR Part 660
Fisheries, Fishing, and Indians.
Dated: December 11, 2019.
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 660 is to be
amended as follows:
PART 660---FISHERIES OFF WEST COAST STATES
0
1. The authority citation for part 660 continues to read as follows:
Authority: 16 U.S.C. 1801 et seq., 16 U.S.C. 773 et seq., and
16 U.S.C 7001 et seq.
0
2. In Sec. 660.55:
0
a. Revise paragraphs (a), (c)(1), (d), and (j), and
0
b. Remove and reserve paragraph (f)(2).
The revisions read as follows:
Sec. 660.55 Allocations.
(a) General. The opportunity to harvest Pacific Coast groundfish is
allocated among participants in the fishery when the ACLs for a given
year are established in the biennial harvest specifications. For any
stock that has been declared overfished, any formal allocation may be
temporarily revised for the duration of the rebuilding period. For
certain species, primarily trawl-dominant species, separate allocations
for the trawl and nontrawl fishery (which for this purpose includes
limited entry fixed gear, directed open access, and recreational
fisheries) will be established biennially or annually using the
standards and procedures described in Chapter 6 of the PCGFMP. Chapter
6 of the PCGFMP provides the allocation structure and percentages for
species allocated between the trawl and nontrawl fisheries. Also, for
those species not subject to the trawl and nontrawl allocations
specified under Amendment 21 and in paragraph (c)(1) of this section,
separate allocations for the limited entry and open access fisheries
may be established using the procedures described in Chapters 6 and 11
of the PCGFMP and this subpart. Allocation of sablefish north of
36[deg] N lat. is described in paragraph (h) of this section and in the
PCGFMP. Allocation of Pacific whiting is described in paragraph (i) of
this section and in the PCGFMP. Allocation of black rockfish is
described in paragraph (l) of this section. Allocation of Pacific
halibut bycatch is described in paragraph (m) of this section.
Allocations not specified in the PCGFMP are established in regulation
through the biennial harvest specifications and are listed in Tables 1
a through d and Tables 2 a through d of this subpart.
* * * * *
(c) * * *
(1) Species/species groups and areas allocated between the trawl
and non-trawl fisheries are allocated based on the amounts and
percentages in the table below. IFQ species not listed in the table
below are allocated between the trawl and nontrawl fisheries through
the biennial harvest specifications process.
Table 1 to Paragraph (c)(1)--Allocation Amounts and Percentages for
Limited Entry Trawl and Non-Trawl Sectors Specified for FMP Groundfish
Stocks and Stock Complexes
------------------------------------------------------------------------
All non-treaty LE All non-treaty non-
Stock or complex trawl sectors (%) trawl sectors (%)
------------------------------------------------------------------------
Lingcod....................... 45 55
Pacific Cod................... 95 5
Sablefish S of 36[deg] N lat.. 42 58
PACIFIC OCEAN PERCH........... 95 5
WIDOW......................... 91 9
Chilipepper S of 40[deg]10' N 75 25
lat..........................
Splitnose S of 40[deg]10' N 95 5
lat..........................
Yellowtail N of 40[deg]10' N 88 12
lat..........................
Shortspine N of 34[deg]27' N 95 5
lat..........................
Shortspine S of 34[deg]27' N (*) (**)
lat..........................
Longspine N of 34[deg]27' N 95 5
lat..........................
DARKBLOTCHED.................. 95 5
Minor Slope RF North of 81 18
40[deg]10' N lat.............
Minor Slope RF South of 63 37
40[deg]10' N lat.............
Dover Sole.................... 95 5
English Sole.................. 95 5
Petrale Sole.................. 95 5
Arrowtooth Flounder........... 95 5
Starry Flounder............... 50 50
[[Page 68806]]
Other Flatfish................ 90 10
------------------------------------------------------------------------
*50 mt.
**Remaining Yield.
(i) Trawl fishery allocation. The allocation for the limited entry
trawl fishery is derived by applying the trawl allocation amounts and
percentages as specified in paragraph (c) of this section and as
specified during the biennial harvest specifications process to the
fishery harvest guideline for species/species groups and areas. For IFQ
species the trawl allocation is further subdivided within each of the
trawl sectors (MS, C/P, and IFQ) as specified in Sec. 660.140,
660.150, and 660.160 of subpart D. The whiting allocation is further
subdivided among the trawl sectors as specified in paragraph (c)(1)(i)
of this section.
(ii) Nontrawl fishery allocation. For each species/species group
and area, the nontrawl fishery allocation is derived by subtracting
from the corresponding harvest guideline the trawl allocations
specified in paragraph (c) of this section and during the biennial
harvest specifications. The nontrawl allocation will be shared between
the limited entry fixed gear, open access, and recreational fisheries
as specified through the biennial harvest specifications process and
consistent with allocations in the PCGFMP.
* * * * *
(d) Commercial harvest guidelines. To derive the commercial harvest
guideline, the fishery harvest guideline is further reduced by the
recreational set-asides. The commercial harvest guideline is then
allocated between the limited entry fishery (both trawl and fixed gear)
and the directed open access fishery, as appropriate.
* * * * *
(j) Fishery set-asides. Annual set-asides are not formal
allocations but they are amounts which are not available to the other
fisheries during the fishing year. For Pacific Coast treaty Indian
fisheries, set-asides will be deducted from the TAC, OY, ACL, or ACT
when specified. For the catcher/processor and mothership sectors of the
at-sea Pacific whiting fishery, set-asides will be deducted from the
limited entry trawl fishery allocation. Set-aside amounts may be
adjusted through the biennial harvest specifications and management
measures process.
* * * * *
0
3. In Sec. 660.60:
0
a. Revise paragraph (d) introductory text, paragraph (d)(1)
introductory text, and paragraph (d)(1)(i);
0
b. Remove paragraph (d)(1)(iii);
0
c. Redesignate paragraphs (d)(1)(iv) through (vii) as (d)(1)(iii)
through (vi), respectively.
The revisions read as follows:
Sec. 660.60 Specifications and management measures.
* * * * *
(d) Automatic actions. The NMFS Regional Administrator or designee
will initiate automatic management actions without prior public notice,
opportunity to comment, or a Council meeting. These actions are
nondiscretionary, and the impacts must have been taken into account
prior to the action. Unless otherwise stated, a single notice will be
published in the Federal Register making the action effective if good
cause exists under the APA to waive notice and comment.
(1) Automatic actions will be initiated in the following
circumstances:
(i) Close the MS or C/P sector when that sector's Pacific whiting
allocation is reached, or is projected to be reached. The MS sector
non-coop fishery will be closed by automatic action when the Pacific
whiting or non-whiting allocation to the non-coop fishery has been
reached or is projected to be reached.
* * * * *
0
4. In Table 1b to Part 660, Subpart C--2019, Allocations by Species or
Species Group, Remove footnotes `c' through `f', and redesignate
footnote `g' as `c'.
0
5. Remove Table 1d to Part 660, Subpart C--At-Sea Whiting Fishery
Annual Set-Asides, 2019, and footnotes
0
6. Redesignate Table 1e to Part 660, Subpart C--Whiting and non-whiting
initial issuance allocation percentage for IFQ decided through the
harvest specifications, 2011 as Table 1d to part 660, Subpart C--
Whiting and non-whiting initial issuance allocation percentage for IFQ
decided through the harvest specifications, 2011.
0
7. Remove Table 2d to Part 660, Subpart C--At-Sea Whiting Fishery
Annual Set-Asides, 2020 and Beyond and footnotes
0
8. In Sec. 660.111, amend the definition of Ex-vessel value by
revising paragraph (3) to read as follows:
Sec. 660.111 Trawl fishery--definitions.
* * * * *
Ex-vessel value * * *
(3) For the C/P Coop Program, the value as determined by the
aggregate pounds of all groundfish species catch (as defined in Sec.
660.11) retained on board, by the vessel registered to a C/P-endorsed
limited entry trawl permit, multiplied by the MS Coop Program average
price per pound as announced pursuant to Sec. 660.115(b)(2).
* * * * *
0
9. In Sec. 660.113, add paragraph (b)(1)(iv), and revise paragraphs
(d)(5)(ii)(A)(2), (d)(5)(ii)(A)(4) and (5) to read as follows:
Sec. 660.113 Trawl fishery--recordkeeping and reporting.
* * * * *
(b) * * *
(1) * * *
(iv) All owners of a quota share (QS) permit as defined at Sec.
660.25(c).
* * * * *
(d) * * *
(5) * * *
(ii) * * *
(A) * * *
(2) The weight of each species of groundfish retained on board,
* * * * *
(4) The ex-vessel value of each species of groundfish retained on
board,
(5) The net ex-vessel value of each species of groundfish retained
on board,
* * * * *
0
10. In Sec. 660.114, revise paragraphs (a), (b), and (c) to read as
follows:
Sec. 660.114 Trawl fishery--economic data collection program.
(a) General. The economic data collection (EDC) program collects
mandatory economic data from participants in the trawl rationalization
program. NMFS requires submission of EDC forms to gather ongoing,
annual
[[Page 68807]]
economic data, including, but not limited to the following categories
of information related to participation in the trawl rationalization
program:
(1) Annual data related to QS permit owner activity and
characteristics of participation in the fishery, costs and earnings
from quota trades, and quota leasing.
(2) Annual data related to costs, earnings, value, labor,
operations, physical characteristics, ownership and leasing information
for vessels, first receiver sites, or shorebased processors.
(b) Economic data collection program requirements. The following
fishery participants in the limited entry groundfish trawl fisheries
are required to comply with the following EDC program requirements:
----------------------------------------------------------------------------------------------------------------
Consequence for failure to
submit (In addition to
Economic data Who is required to consequences listed below,
Fishery participant collection submit an EDC? failure to submit an EDC
may be a violation of the
MSA.)
----------------------------------------------------------------------------------------------------------------
(1) Limited entry trawl catcher (i) Annual/ongoing (A) All owners, (1) For permit owner, a
vessels. economic data. lessees, and limited entry trawl permit
charterers of a application (including MS/
catcher vessel CV-endorsed limited entry
registered to a trawl permit) will not be
limited entry trawl considered complete until
endorsed permit. the required EDC for that
permit owner associated
with that permit is
submitted, as specified at
Sec. 660.25(b)(4)(i).
(2) For a vessel owner,
participation in the
groundfish fishery
(including, but not
limited to, changes in
vessel registration,
vessel account actions, or
if own QS permit, issuance
of annual QP or IBQ
pounds) will not be
authorized until the
required EDC for that
owner for that vessel is
submitted, as specified,
in part, at Sec.
660.25(b)(4)(vi) and Sec.
660.140(e).
(3) For a vessel lessee or
charterer, participation
in the groundfish fishery
(including, but not
limited to, issuance of
annual QP or IBQ pounds if
own QS or IBQ) will not be
authorized, until the
required EDC for their
operation of that vessel
is submitted.
(B) [Reserved]
(2) Motherships.................... (i) Annual/ongoing (A) All owners, (1) For permit owner, an MS
economic data. lessees, and permit application will
charterers of a not be considered complete
mothership vessel until the required EDC for
registered to an MS that permit owner
permit. associated with that
permit is submitted, as
specified at Sec.
660.25(b)(4)(i).
(2) For a vessel owner,
participation in the
groundfish fishery
(including, but not
limited to, changes in
vessel registration) will
not be authorized until
the required EDC for that
owner for that vessel is
submitted, as specified,
in part, at Sec.
660.25(b)(4)(vi).
(3) For a vessel lessee or
charterer, participation
in the groundfish fishery
will not be authorized,
until the required EDC for
their operation of that
vessel is submitted.
(B) [Reserved]
(3) Catcher processors............. (i) Annual/ongoing (A) All owners, (1) For permit owner, a C/P-
economic data. lessees, and endorsed limited entry
charterers of a trawl permit application
catcher processor will not be considered
vessel registered to complete until the
a C/P-endorsed required EDC for that
limited entry trawl permit owner associated
permit. with that permit is
submitted, as specified at
Sec. 660.25(b)(4)(i).
(2) For a vessel owner,
participation in the
groundfish fishery
(including, but not
limited to, changes in
vessel registration) will
not be authorized until
the required EDC for that
owner for that vessel is
submitted, as specified,
in part, at Sec.
660.25(b)(4)(vi).
(3) For a vessel lessee or
charterer, participation
in the groundfish fishery
will not be authorized,
until the required EDC for
their operation of that
vessel is submitted.
(B) [Reserved]
(4) First receivers/shorebased (i) Annual/ongoing (A) All owners of a (1) A first receiver site
processors. economic data. first receiver site license application will
license. not be considered complete
until the required EDC for
that license owner
associated with that
license is submitted, as
specified at Sec.
660.140(f)(3). See
paragraph (b)(4)(i)(A) of
this table.
(2) [Reserved]
(B) All owners and
lessees of a
shorebased processor
(as defined under
``processor'' at Sec.
660.11, for
purposes of EDC) that
received round or
headed-and-gutted IFQ
species groundfish or
whiting from a first
receiver.
(5) Quota Share Permit Owners...... (i) Annual/ongoing (A) All owners of a (1) A Quota Share permit
economic data. Quota Share permit application or permit
and account (as renewal package will not
defined under Sec. be considered complete
660.25 (c)). until the required EDC for
that permit is submitted,
as specified at Sec.
660.140, subpart D.
(2) [Reserved]
(B) [Reserved]
----------------------------------------------------------------------------------------------------------------
(c) Submission of the EDC forms, and deadline--(1) Submission of
the EDC form. The complete, certified EDC forms must contain valid
responses for all data fields, and must be submitted either by paper or
web form submission as follows:
[[Page 68808]]
(i) Paper form submission. Paper forms must be submitted to ATTN:
Economic Data Collection Program (FRAM Division), NMFS, Northwest
Fisheries Science Center, 2725 Montlake Boulevard East, Seattle, WA
98112.
(ii) Web form submission. Completed EDC web forms must be submitted
electronically via the Economic Data Collection Program Web Form portal
through NOAA.gov/fisheries and the signature page faxed, mailed, or
hand-delivered to NWFSC.
(2) Deadline. Complete, certified EDC forms must be mailed and
postmarked by or hand-delivered to NMFS NWFSC no later than September 1
each year for the prior year's data.
(3) Quota Share Permit Owner Survey Submissions and Deadline. Quota
Share Permit Owner survey forms are submitted by webform only during
the quota account application and renewal process specified at Sec.
660.140 (d)(2). The complete certified Quota Share Permit Owner survey
must be submitted no later than November 30 of each year.
* * * * *
0
11. In Sec. 660.115, revise paragraphs (d)(1)(ii)(B) and (C) to read
as follows:
Sec. 660.115 Trawl fishery--cost recovery program.
* * * * *
(d) * * *
(1) * * *
(ii) * * *
(B) Fee collection deposits. Each fish buyer, no less frequently
than at the end of each month, shall deposit, in the deposit account
established under paragraph (d)(1)(ii)(A) of this section, all fees
collected, not previously deposited, that the fish buyer collects
through a date not more than two calendar days before the date of
deposit. The deposit principal may not be pledged, assigned, or used
for any purpose other than aggregating collected fee revenue for
disbursement to the Fund in accordance with paragraph (d)(1)(ii)(C) of
this section. The fish buyer is entitled, at any time, to withdraw
deposit interest, if any, but never deposit principal, from the deposit
account for the fish buyer's own use and purposes. If the fish buyer
has used a credit card to pay the cost recovery fee, the deposit
principal may be used to reimburse the credit card in the same amount
as the fee payment.
(C) Deposit principal disbursement. Not later than the 14th
calendar day after the last calendar day of each month, or more
frequently if the amount in the account exceeds the account limit for
insurance purposes, the fish buyer shall disburse to NMFS the full
deposit principal then in the deposit account. The fish buyer shall
disburse deposit principal by electronic payment to the Fund subaccount
to which the deposit principal relates. If the fish buyer has used a
credit card to pay the cost recovery fee, the deposit principal may be
used to reimburse the credit card in the same amount as the fee
payment. NMFS will announce information about how to make an electronic
payment to the Fund subaccount in the notification on fee percentage
specified in paragraph (b)(2) of this section. Each disbursement must
be accompanied by a cost recovery form provided by NMFS. Recordkeeping
and reporting requirements are specified in paragraph (d)(4) of this
section and at Sec. 660.113(b)(5) for the Shorebased IFQ Program and
Sec. 660.113(c)(5) for the MS Coop Program. The cost recovery form
will be available on the pay.gov website.
* * * * *
0
12. In Sec. 660.140, revise paragraph (d)(1)(ii) introductory text,
paragraph (d)(2)(iii) introductory text, paragraphs (d)(3)(i)(D),
(d)(3)(ii)(B)(2), (d)(3)(ii)(B)(3), (e)(3)(iii)(A) and (B), paragraph
(e)(4)(i) introductory text, and paragraphs (e)(4)(ii), and (e)(5) to
read as follows:
Sec. 660.140 Shorebased IFQ Program.
* * * * *
(d) * * *
(1) * * *
(ii) Annual QP and IBQ pound allocations. QP and IBQ pounds will be
deposited into QS accounts annually. QS permit owners will be notified
of QP deposits via the IFQ website and their QS account. QP and IBQ
pounds will be issued to the nearest whole pound using standard
rounding rules (i.e., decimal amounts less than 0.5 round down and 0.5
and greater round up). NMFS will distribute such allocations to the
maximum extent practicable, not to exceed the total allocation. QS
permit owners must transfer their QP and IBQ pounds from their QS
account to a vessel account in order for those QP and IBQ pounds to be
fished. QP and IBQ pounds must be transferred in whole pounds (i.e., no
fraction of a QP or IBQ pound can be transferred). All QP and IBQ
pounds in a QS account must be transferred to a vessel account between
January 1 and December 31 of the year for which they were issued in
order to be fished.
* * * * *
(2) * * *
(iii) QS permit application process. NMFS will accept a QS permit
application from January 1 to November 30 of each calendar year. QS
permit applications received between December 1 and December 31 will be
processed by NMFS in the following calendar year. NMFS will issue only
one QS permit to each unique person, as defined at Sec. 660.11 subject
to the eligibility requirements at paragraph (d)(2)(i) of this section.
Each applicant must submit a complete application. A complete
application includes a QS permit application form, payment of required
fees, complete documentation of QS permit ownership on the Trawl
Identification of Ownership Interest Form as required under paragraph
(d)(4)(iv) of this section, and a complete economic data collection
form as required under Sec. 660.114. NMFS may require additional
documentation as it deems necessary to make a determination on the
application. The QS permit application will be considered incomplete
until the required information is submitted.
* * * * *
(3) * * *
(i) * * *
(D) QS permits will not be renewed until SFD has received a
complete application for a QS permit renewal, which includes payment of
required fees, complete documentation of QS permit ownership on the
Trawl Identification of Ownership Interest Form as required under
paragraph (d)(4)(iv) of this section, a complete economic data
collection form as required under Sec. 660.114. The QS permit renewal
will be considered incomplete until the required information is
submitted.
* * * * *
(ii) * * *
(B) * * *
(2) Transfer of QS or IBQ between QS accounts. QS permit owners may
transfer QS or IBQ to another owner of a QS permit, subject to
accumulation limits and approval by NMFS. QS or IBQ is transferred as a
percent, divisible to one-thousandth of a percent (i.e., greater than
or equal to 0.001 percent). QS or IBQ cannot be transferred to a vessel
account. Owners of non-renewed QS permits may not transfer QS. QP in QS
accounts cannot be transferred between QS accounts. NMFS will allocate
QP based on the QS percentages as listed on a QS permit that was
renewed during the previous October 1 through November 30 renewal
period. QS transfers will be recorded in the QS account but will not
become effective for purposes of allocating QPs until the following
year. QS or IBQ may not be transferred between December 1 through
December 31 each year. Any QS transaction that is pending as of
December 1 will be administratively retracted. NMFS will allocate QP
for the following year based on the QS
[[Page 68809]]
percentages as of December 1 of each year.
(3) Transfer of QP or IBQ pounds from a QS account to a vessel
account. QP or IBQ pounds must be transferred in whole pounds (i.e., no
fraction of a QP can be transferred). QP or IBQ pounds must be
transferred to a vessel account in order to be used. Transfers of QP or
IBQ pounds from a QS account to a vessel account are subject to annual
vessel accumulation limits and NMFS' approval. Once QP or IBQ pounds
are transferred from a QS account to a vessel account (accepted by the
transferee/vessel owner), they cannot be transferred back to a QS
account and may only be transferred to another vessel account. QP or
IBQ pounds may not be transferred from one QS account to another QS
account. All QP or IBQ pounds from a QS account must be transferred to
one or more vessel accounts by December 31 each year in order to be
fished. All QP or IBQ pounds expire at the end of the post-season
transfer period of the year after which they were issued. If, in any
year, the Regional Administrator makes a decision to reapportion
Pacific whiting from the tribal to the non-tribal fishery or NMFS
releases additional QP consistent with Sec. 660.60(c) and paragraph
(d)(1)(ii) of this section, NMFS will credit QS accounts with
additional QP proportionally, based on the QS percent for a particular
QS permit owner and the increase in the shorebased trawl allocation
specified at paragraph (d)(1)(ii)(D) of this section.
* * * * *
(e) * * *
(3) * * *
(iii) * * *
(A) General. QP or IBQ pounds may only be transferred from a QS
account to a vessel account or between vessel accounts. QP or IBQ
pounds cannot be transferred from a vessel account to a QS account.
Transfers of QP or IBQ pounds are subject to annual vessel accumulation
limits. QP or IBQ pounds must be transferred in whole pounds (i.e., no
fraction of a QP or IBQ pound can be transferred). During the year
there may be situations where NMFS deems it necessary to prohibit
transfers (i.e., account reconciliation, system maintenance, or for
emergency fishery management reasons).
(B) Transfer procedures. QP or IBQ pound transfers from one vessel
account to another vessel account must be accomplished via the online
vessel account. To make a transfer, a vessel account owner must
initiate a transfer request by logging onto the online vessel account.
Following the instructions provided on the website, the vessel account
owner must enter pertinent information regarding the transfer request
including, but not limited to: IFQ species, amount of QP or IBQ pounds
to be transferred for each IFQ species (in whole pound increments);
name and any other identifier of the eligible transferee (e.g., USCG
documentation number or state registration number, as applicable) of
the eligible vessel account receiving the transfer; and the value of
the transferred QP or IBQ pounds. The online system will verify whether
all information has been entered and whether the transfer complies with
vessel limits, as applicable. If the information is not accepted, an
electronic message will record as much in the transferor's vessel
account explaining the reason(s). If the information is accepted, the
online system will record the pending transfer in both the transferor's
and the transferee's vessel accounts. The transferee must approve the
transfer by electronic signature. If the transferee accepts the
transfer, the online system will record the transfer and confirm the
transaction in both accounts through a transaction confirmation notice.
Once the transferee accepts the transaction, the transaction is final
and permanent. QP or IBQ pounds may be transferred between vessel
accounts at any time during January 1 through December 31 each year
unless otherwise notified by NMFS. Unused QP from the previous fishing
year (base year) may be transferred for the purpose of covering end-of-
the-year vessel account deficits through the end of the post-season
transfer period described at paragraph (e)(5)(iv) of this section.
(4) * * *
(i) Vessel limits. For each IFQ species or species group specified
in this paragraph, vessel accounts may not have QP or IBQ pounds in
excess of the annual QP vessel limit in any year, except as allowed by
paragraph (e)(5)(iii) of this section. The annual QP vessel limit is
calculated as all QPs transferred in minus all QPs transferred out of
the vessel account.
* * * * *
(ii) Trawl identification of ownership interest form. Any person
that owns a vessel registered to a limited entry trawl permit and that
is applying for or renewing a vessel account shall document those
persons that have an ownership interest in the vessel greater than or
equal to 2 percent. This ownership interest must be documented with the
SFD via the Trawl Identification of Ownership Interest Form. SFD will
not generate and issue a vessel account unless the Trawl Identification
of Ownership Interest Form has been completed. NMFS may request
additional information of the applicant as necessary to verify
compliance with accumulation limits.
(5) Carryover of Surplus and Deficit QP or IBQ. The carryover
provision allows a limited amount of surplus QP or IBQ pounds in a
vessel account to be carried over from one year (the base year) to the
next immediately following year or allows a deficit in a vessel account
from fishing during the base year to be covered in the immediately
following year with QP or IBQ pounds from the base year or the a
immediately following year, up to a carryover limit without violating
the provisions of this section.
(i) Surplus QP or IBQ pounds. A vessel account with a surplus of QP
or IBQ (unused QP or IBQ pounds) for any IFQ species following the
post-season transfer period specified at paragraph (e)(5)(iv) of this
section, may carryover for use in the year immediately following the
base year amounts of unused QP or IBQ pounds up to its carryover limit
specified at (e)(5)(ii) of this section, and subject to the limitations
of this paragraph. After the post-season transfer period is concluded,
NMFS will complete determination of surplus QP or IBQ pound amounts
that may be carried over into the following year up to the surplus
carryover limit specified at paragraph (e)(5)(ii) of this section. The
amount of surplus QP or IBQ pounds issued as carryover will be reduced
in proportion to any reduction in the ACL-between the base year and the
immediately following year. At the end of the post-season transfer
period, any base year QP or IBQ pounds remaining in vessel accounts
will be suspended from use while NMFS calculates annual surplus
carryover amounts. NMFS will consult with the Council in making its
final determination of the IFQ species and total QP or IBQ amounts to
be issued as annual surplus carryover. After NMFS completes
determination of the annual surplus carryover amounts for each vessel
account, suspended QP or IBQ pounds in excess of the annual surplus
carryover amount will expire. NMFS will subsequently release any
remaining suspended QP or IBQ pounds for issuance as surplus carryover
to vessel accounts from which they were suspended, and notify vessel
account owners of the issuance. Surplus carryover QP or IBQ pounds are
valid for the year in which they are issued (i.e., the year immediately
following the base year). Surplus carryover amounts that would place a
vessel above the
[[Page 68810]]
annual QP vessel limits for the immediately following year (specified
at paragraph (e)(4) of this section) will not be issued. Amounts issued
as surplus QP or IBQ pounds do not change the shorebased trawl
allocation in the year in which the carryover was issued. Surplus QP or
IBQ pounds may not be carried over for more than one year.
(ii) Surplus Carryover Limit. The limit for the surplus carryover
is calculated by multiplying 10 percent by the cumulative total QP or
IBQ pounds (used and unused) transferred into a vessel account for the
base year, less any transfers out of the vessel account, QP resulting
from reapportionment of whiting specified at Sec. 660.60(d),
additional QP issued to the account during the year (as specified at
Sec. 660.60(c)(3)(ii)), and previous carryover amounts. The percentage
used for the carryover surplus limit may be changed by Council
recommendation during the biennial specifications and management
measures process or by routine management measures as specified in
Sec. 660.60(c).
(iii) Deficit QP or IBQ pounds. After the end of the base year, a
vessel account may cover the full amount of any deficit (negative
balance) of QP or IBQ pounds using QP or IBQ from the following year,
base year QP or IBQ pounds, through the post-season transfer period, or
a combination, without restriction by annual QP vessel limits. A vessel
account acquiring QP or IBQ after the base year to cover a deficit
resulting from catch in excess of the base year annual QP vessel limits
may still be in violation of annual vessel QP limit provisions
specified at paragraph (e)(4)(i) of this section, or other provisions
of this section, if the deficit exceeds the deficit carryover limit
specified at paragraph (e)(5)(iii)(B) of this section. If an IFQ
species is reallocated between the base year and the following year due
to changes in management areas or subdivision of a species group as
specified at paragraph (c)(3)(vii) of this section, a vessel account
will not carryover the deficit for that IFQ species into the following
year. A vessel account with a deficit for any IFQ species in the base
year may cover that deficit during the post-season transfer period or
with QP or IBQ pounds from the following year without violating the
provisions of this section if all of the following conditions are met:
(A) The vessel account owner declares out of the Shorebased IFQ
Program for the remainder of the year in which the deficit occurred.
The vessel account owner must submit a signed, dated, and notarized
letter to OLE, declaring out of the Shorebased IFQ Program for the
remainder of the year and invoking the carryover provision to cover the
deficit. Signed, dated, and notarized letters may be submitted to NMFS,
West Coast Region, Office of Law Enforcement, ATTN VMS, Bldg. 1, 7600
Sand Point Way NE, Seattle, WA 98115. If the vessel account owner
covers the deficit later within the same calendar year, the vessel may
re-enter the Shorebased IFQ Program. If the deficit is documented less
than 30 days before the end of the calendar year, exiting out of the
Shorebased IFQ Program for the remainder of the year is not required.
(B) The amount of QP or IBQ pounds required to cover the deficit
from the current fishing year is less than or equal to the vessel's
carryover limit for a deficit. The carryover limit for a deficit is
calculated as 10 percent of the total cumulative QP or IBQ pounds (used
and unused, less any transfers out of the vessel account, and any
previous carryover amounts) in the vessel account 30 days after the
date the deficit is documented;
(C) Sufficient QP or IBQ pounds are transferred into the vessel
account to cure the deficit within 30 days of NMFS' issuance of QP or
IBQ pounds to QS accounts in the following year or the date the deficit
is documented (whichever is later) but not later than the end of the
post-season transfer period; and
(D) The total QP required to cover the vessel's total catch from
the base year is not greater than the annual QP vessel limit for the
base year.
(iv) Post-Season QP or IBQ transfers. A vessel account with a
deficit (negative balance) of QP or IBQ pounds after December 31 for
any IFQ species may conduct post-season transfers to cure the deficit
by obtaining available unused QP or IBQ pounds remaining in other
vessel accounts from the base fishing year. Vessel account owners may
conduct post-season transfers of QP and IBQ pounds according to
transfer procedures specified in paragraph (e)(3)(iii) of this section,
and subject to the following conditions:
(A) Post-season transfers may be conducted during a period starting
January 1 and ending 14 calendar days after NMFS has completed its
determination of the total base year IFQ catch for all vessels for end-
of-the-year account reconciliation. NMFS will issue a public notice
when end-of-the-year account reconciliation has been completed, on or
about March 1 of each year.
(B) QP or IBQ pounds from the base fishing year transferred during
the post-season transfer period may not be fished in any way, and may
only be transferred for the purpose of covering deficits carried into
the immediately following fishing year from the base fishing year.
(C) After the post-season transfer period, remaining QP and IBQ
pounds surplus and deficits from the base fishing year are subject to
carryover provisions specified at paragraphs (e)(5)(ii) and (e)(5)(iii)
of this section.
* * * * *
0
13. In Sec. 660.150 revise paragraphs (c) and (d)(1)(iii)(A)(1)(v) to
read as follows:
Sec. 660.150 Mothership (MS) Coop Program.
* * * * *
(c) MS Coop Program species and allocations--(1) MS Coop Program
species. All species other than Pacific whiting are managed with set-
asides for the MS and C/P Coop Programs, as described in Table 1d to
subpart C of this part.
(2) Annual mothership sector sub-allocations. Annual allocation
amount(s) will be determined using the following procedure:
(i) MS/CV catch history assignments. Catch history assignments will
be based on catch history using the following methodology:
(A) Pacific whiting catch history assignment. Each MS/CV
endorsement's associated catch history assignment of Pacific whiting
will be annually allocated to a single permitted MS coop or to the non-
coop fishery. If multiple MS/CV endorsements and their associated CHAs
are registered to a limited entry permit, that permit may be
simultaneously registered to more than one MS coop or to both a coop(s)
and non-coop fishery. Once assigned to a permitted MS coop or to the
non-coop fishery, each MS/CV endorsement's catch history assignment
remains with that permitted MS coop or non-coop fishery for that
calendar year. When the mothership sector allocation is established,
the information for the conversion of catch history assignment to
pounds will be made available to the public through a Federal Register
announcement and/or public notice and/or the NMFS website. The amount
of whiting from the catch history assignment will be issued to the
nearest whole pound using standard rounding rules (i.e., less than 0.5
rounds down and 0.5 and greater rounds up).
(1) In years where the Pacific whiting harvest specification is
known by the start of the mothership sector primary whiting season
specified at Sec. 660.131(b)(2)(iii)(B), allocation for Pacific
whiting will be made by the start of the season.
(2) In years where the Pacific whiting harvest specification is not
known by
[[Page 68811]]
the start of the mothership sector primary whiting season specified at
Sec. 660.131(b)(2)(iii)(B), NMFS will issue Pacific whiting
allocations in two parts. Before the start of the primary whiting
season, NMFS will allocate Pacific whiting based on the MS Coop Program
allocation percent multiplied by the lower end of the range of
potential harvest specifications for Pacific whiting for that year.
After the final Pacific whiting harvest specifications are established,
NMFS will allocate any additional amounts of Pacific whiting to the MS
Coop Program.
(B) Non-whiting groundfish species catch--(1) At-sea set-asides of
non-whiting groundfish species will be managed on an annual basis
unless there is a risk of a harvest specification being exceeded,
unforeseen impact on other fisheries, or conservation concerns, in
which case inseason action may be taken. Set asides may be adjusted
through the biennial specifications and management measures process as
necessary.
(2) Groundfish species not addressed in paragraph (c)(2)(i)(B)(1)
of this section, will be managed on an annual basis unless there is a
risk of a harvest specification being exceeded, unforeseen impact on
other fisheries, or conservation concerns, in which case inseason
action may be taken.
(3) Annually a specified amount of the Pacific halibut will be held
in reserve as a shared set-aside for bycatch in the at-sea Pacific
whiting fisheries and the shorebased trawl sector south of 40[deg]10' N
lat.
(C) Rounding rules and MS/CV allocations. Rounding rules may affect
distribution of the MS Coop Program allocations among the catch history
assignments for individual MS/CV-endorsed permits. NMFS will distribute
such allocations to the maximum extent practicable, not to exceed the
total allocation.
(ii) Annual coop allocations--(A) Pacific whiting. Each permitted
MS coop is authorized to harvest a quantity of Pacific whiting that is
based on the sum of the catch history assignments for each member MS/
CV-endorsed permit identified in the NMFS-accepted coop agreement for a
given calendar year. Other limited entry permits registered to vessels
that will fish for the coop do not bring catch allocation to a
permitted MS coop.
(B) Single MS/CV Coop Fishery. If all MS/CV-endorsed permits are
members of a single coop in a given year and there is not a non-coop
fishery, then NMFS will allocate 100 percent of the MS Coop Program
allocation to that coop.
(iii) Annual non-coop allocation--(A) Pacific whiting. The non-coop
whiting fishery is authorized to harvest a quantity of Pacific whiting
that is remaining in the mothership sector annual allocation after the
deduction of all coop allocations.
(B) Announcement of the non-coop fishery allocations. Information
on the amount of Pacific whiting and non-whiting groundfish with
allocations that will be made available to the non-coop fishery when
the final Pacific whiting specifications for the mothership sector is
established and will be announced to the public through a Federal
Register announcement and/or public notice and/or the NMFS website.
(3) Reaching an allocation or sub-allocation. When the mothership
sector Pacific whiting allocation, or Pacific whiting sub-allocation is
reached or is projected to be reached, the following action may be
taken:
(i) Further harvesting, receiving or at-sea processing by a
mothership or catcher vessel in the mothership sector is prohibited
when the mothership sector Pacific whiting allocation is projected to
be reached. No additional unprocessed groundfish may be brought on
board after at-sea processing is prohibited, but a mothership may
continue to process catch that was on board before at-sea processing
was prohibited. Pacific whiting may not be taken and retained,
possessed, or landed by a catcher vessel participating in the
mothership sector.
(ii) When a permitted MS coop sub-allocation of Pacific whiting-is
reached, further harvesting or receiving of groundfish by vessels
fishing in the permitted MS coop must cease, unless the permitted MS
coop is operating under an NMFS-accepted inter-coop agreement.
(iii) When the non-coop fishery sub-allocation of Pacific whiting
is projected to be reached, further harvesting or receiving of
groundfish by vessels fishing in the non-coop fishery must cease.
(4) [Reserved]
(5) Announcements. The Regional Administrator will announce in the
Federal Register when the mothership sector allocation of Pacific
whiting is reached, or is projected to be reached, and specify the
appropriate action. In order to prevent exceeding an allocation and to
avoid underutilizing the resource, prohibitions against further taking
and retaining, receiving, or at-sea processing of Pacific whiting may
be made effective immediately by actual notice to fishers and
processors, by email, internet, phone, fax, letter, press release, and/
or USCG Notice to Mariners (monitor channel 16 VHF), followed by
publication in the Federal Register, in which instance public comment
will be sought for a reasonable period of time thereafter.
(6) Redistribution of annual allocation--(i) Between permitted MS
coops (inter-coop). (A) Through an inter-coop agreement, the designated
coop managers of permitted MS coops may distribute Pacific whiting
allocations among one or more permitted MS coops, provided the
processor obligations at paragraph (c)(7) of this section have been met
or a mutual agreement exception at paragraph (c)(7)(iv) of this section
has been submitted to NMFS.
(B) In the case of a MS coop failure during the Pacific whiting
primary season for the mothership sector, unused allocation associated
with the catch history will not be available for harvest by the coop
that failed, by any former members of the coop that failed, or any
other MS coop for the remainder of that calendar year.
(1) Between the MS coop and non-coop fisheries. Pacific whiting may
not be redistributed between the coop and non-coop fisheries.
(2) Between Pacific whiting sectors. Pacific whiting may not be
redistributed between the mothership sector and catcher/processor
sector. Whiting may not be redistributed to the Shorebased IFQ Program.
(7) Processor obligation and mutual agreement exceptions--(i)
Processor obligation. Through the annual MS/CV-endorsed limited entry
permit renewal process, the MS/CV-endorsed permit owner must identify
to NMFS to which MS permit the MS/CV permit owner intends to obligate
the catch history assignment associated with that permit if they are
participating in the MS coop fishery. Only one MS permit may be
designated for each MS/CV endorsement and associated catch history
assignment.
(ii) Expiration of a processor obligation. Processor obligations
expire at the end of each calendar year when the MS Coop Permit
expires.
(iii) Processor obligation when MS coop allocation is
redistributed. When a permitted MS coop redistributes Pacific whiting
allocation within the permitted MS coop or from one permitted MS coop
to another permitted MS coop through an inter-coop agreement, such
allocations must be delivered to the mothership registered to the MS
permit to which the allocation was obligated under the processor
obligation submitted to NMFS, unless a mutual agreement exception has
been submitted to NMFS.
[[Page 68812]]
(iv) Mutual agreement exception. An MS/CV-endorsed permit's catch
history assignment can be released from a processor obligation through
a mutual agreement exception. The MS/CV-endorsed permit owner must
submit a copy to NMFS of the written agreement that includes the
initial MS permit owner's acknowledgment of the release of the MS/CV-
endorsed permit owner's processor obligation and the MS/CV-endorsed
permit owner must identify a processor obligation for a new MS permit.
(v) MS permit withdrawal. If an MS permit withdraws from the
mothership fishery before the resulting amounts of catch history
assignment have been announced by NMFS, any MS/CV-endorsed permit
obligated to the MS permit may elect to participate in the coop or non-
coop fishery. In such an event, the MS permit owner must provide
written notification of its withdrawal to NMFS and all MS/CV-endorsed
permits that are obligated to the MS permit, and the owner of each MS/
CV-endorsed permit obligated to the MS permit must provide written
notification to NMFS of their intent to either participate in the non-
coop fishery or the coop fishery, and if participating in the coop
fishery must identify a processor obligation for a new MS permit.
(vi) Submission of a mutual agreement exception or MS permit
withdrawal. Written notification of a mutual exception agreement or MS
permit withdrawal must be submitted to NMFS, Northwest Region, Permits
Office, Bldg. 1, 7600 Sand Point Way NE, Seattle, WA 98115.
(d) * * *
(1) * * *
(iii) * * *
(A) * * *
(1) * * *
(v) A description of the coop's plan to adequately monitor and
account for the catch of Pacific whiting and non-whiting groundfish,
and to monitor and account for the catch of prohibited species.
* * * * *
0
14. In Sec. 660.160:
0
a. Revise paragraph (c)(1) introductory text, paragraphs (c)(1)(i),
(c)(3)(i) and (ii);
0
b. Remove paragraph (c)(3)(iii);
0
c. Remove and reserve paragraph (c)(5);
0
d. Revise paragraphs (c)(6), (c)(7), and (d)(1)(iii)(A)(1)(iii), and
paragraph (e)(1) introductory text;
0
e. Add paragraph (e)(1)(iv);
0
f. Revise paragraph (h)(1) introductory text, and paragraphs (h)(2)
through (4);
0
g. Add paragraph (h)(5).
The revisions and additions read as follows:
Sec. 660.160 Catcher/processor (C/P) Coop Program.
* * * * *
(c) * * *
(1) C/P Coop Program species. All species other than Pacific
whiting are managed with set-asides for the MS and C/P Coop Programs.
(i) Species with formal allocations to the C/P Coop Program:
Pacific whiting.
* * * * *
(3) * * *
(i) At-sea sector set-asides of non-whiting groundfish species will
be managed on an annual basis unless there is a risk of a harvest
specification being exceeded, unforeseen impact on other fisheries, or
conservation concerns, in which case inseason action may be taken. Set
asides may be adjusted through the biennial specifications and
management measures process as necessary.
(ii) Groundfish species not addressed in paragraph (c)(3)(i) of
this section, will be managed on an annual basis unless there is a risk
of a harvest specification being exceeded, unforeseen impact on other
fisheries, or conservation concerns, in which case inseason action may
be taken.
* * * * *
(5) [Reserved]
(6) Reaching the catcher/processor sector allocation. When the
catcher/processor sector allocation of Pacific whiting is reached or is
projected to be reached, further taking and retaining, receiving, or
at-sea processing by a catcher/processor is prohibited. No additional
unprocessed groundfish may be brought on board after at-sea processing
is prohibited, but a catcher/processor may continue to process catch
that was on board before at-sea processing was prohibited. The catcher/
processor sector will close when the allocation of any one species is
reached or projected to be reached.
(7) Announcements. The Regional Administrator will announce in the
Federal Register when the catcher/processor sector allocation of
Pacific whiting is reached, or is projected to be reached, and specify
the appropriate action. In order to prevent exceeding an allocation and
to avoid underutilizing the resource, prohibitions against further
taking and retaining, receiving, or at-sea processing of Pacific
whiting may be made effective immediately by actual notice to fishers
and processors, by email, internet, phone, fax, letter, press release,
and/or USCG Notice to Mariners (monitor channel 16 VHF), followed by
publication in the Federal Register, in which instance public comment
will be sought for a reasonable period of time thereafter.
(d) * * *
(1) * * *
(iii) * * *
(A) * * *
(1) * * *
(iii) A description of the coop's plan to adequately monitor and
account for the catch of Pacific whiting and non-whiting groundfish,
and to monitor and account for the catch of prohibited species.
* * * * *
(e) * * *
(1) General. Any vessel participating in the C/P sector of the non-
tribal primary Pacific whiting fishery-must be registered to a valid
limited entry permit with a C/P endorsement--subject to the limited
entry permit provisions given at Sec. 660.25(b).
* * * * *
(iv) Trawl identification of ownership interest form. Any person
that is applying for or renewing a C/P-endorsed permit shall document
those persons that have an ownership interest in the permit greater
than or equal to 2 percent. This ownership interest must be documented
with the SFD via the Trawl Identification of Ownership Interest Form.
SFD will not issue a C/P-endorsed permit unless the Trawl
Identification of Ownership Interest Form has been completed.
* * * * *
(h) * * *
(1) Conditions for determination of coop failure. The Regional
Administrator will determine that a permitted C/P coop has failed if
any one of the following occurs:
* * * * *
(2) Notification of coop failure. If the permitted C/P coop
dissolves, the designated coop manager must notify NMFS SFD in writing
of the dissolution of the coop to allow the Regional Administrator to
make a determination of coop failure. The Regional Administrator may
also make an independent determination of a coop failure based on
factual information collected by or provided to NMFS. NMFS will notify
the designated coop manager in writing in the event the Regional
Administrator determines the coop has failed.
(3) Coop permit no longer in effect. Upon determination of a coop
failure, the C/P coop permit will no longer be in effect.
(4) Conversion to IFQ Fishery. The C/P sector will convert to an
IFQ-based fishery beginning the following calendar
[[Page 68813]]
year after a determination of a coop failure, or as soon as practicable
thereafter. NMFS will develop additional regulations, as necessary to
implement an IFQ-based fishery for the C/P sector. Each C/P-endorsed
permit will receive an equal amount of QS from the total C/P sector
allocation. That QS will not be transferable separate from the C/P-
endorsed permit until a determination is made to allow such transfers,
necessary regulations are implemented, and public notice is provided.
Any use of QP or IBQ pounds associated with C/P endorsed permits is
prohibited until the regulations for a C/P sector IFQ system are
implemented.
(5) Accumulation Limits. C/P Sector accumulation limits will take
effect in the event that the C/P coop fails and converts to an IFQ-
based fishery. If an IFQ fishery is implemented, any individual or
entity may own or control a maximum of five C/P endorsed permits and QS
allocations associated with those permits, as described in paragraph
(e)(5)(iv) of this section. C/P endorsed permit accumulation limits
will only take effect after determination of a coop failure is made and
the following administrative process occurs:
(i) Divestiture Period. Upon determination of a coop failure, a
divestiture period will occur starting with the date that co-op failure
has been determined and running through the date on which an IFQ
program is implemented for the C/P sector or another date specified in
the IFQ program implementing regulations. During the divestiture
period, an individual or entity may not acquire ownership or control
over a total of more than five C/P-endorsed permits. Any entity that
already owns or controls more than five C/P-endorsed permits may not
acquire additional permits. During the divestiture period any entity
who owns or controls C/P-endorsed permits may sell or trade any permits
it owns. C/P-endorsed permits may be voluntarily abandoned to NMFS
using the procedures provided under paragraph (h)(5)(iii) of this
section.
(ii) Divestiture and redistribution process. After conversion to an
IFQ fishery and completion of the divestiture period, any person owning
or controlling C/P-endorsed permits must be in compliance with
accumulation limits, even if that ownership is not reflected in the
ownership records available to NMFS as specified at Sec.
660.140(e)(1)(iv). Permit owners found to exceed the five permit
accumulation limit for C/P-endorsed permits after the divestiture
period are in violation of the accumulation limits and required to
completely divest of ownership or control of C/P-endorsed permits that
exceed the accumulation limit. C/P-endorsed permits may be voluntarily
abandoned to NMFS using the procedures provided under paragraph
(h)(5)(iii) of this section. If NMFS finds that any entity owns or
controls more than five C/P-endorsed permits, NMFS will make an Initial
Administrative Determination (IAD) that the entity must divest of
control or ownership of permits that exceed the accumulation limit
within 30 days or NMFS will revoke the excess permits in accordance
with Sec. 660.25(h)(2)(ii). The permit owner will have the opportunity
to appeal the IAD through the National Appeals Office under the
provisions established at 15 CFR part 906. All QS associated with
revoked permits will be redistributed to all other C/P-endorsed permit
owners in proportion to their QS holdings, based on current ownership
records, on or about January 1 of the calendar year following the year
in which the permits are revoked. This redistribution process will not
allow any entity to receive more than 50 percent of the total QS
allocations for the C/P sector.
(iii) Abandonment of C/P-endorsed permits. C/P-endorsed permits
owners that own or control more than the five permit accumulation limit
may voluntarily abandon C/P-endorsed permits if they notify NMFS in
writing during the divestiture period specified at paragraph (h)(5)(i)
of this section or within 30 days of conversion to an IFQ fishery. The
written abandonment request must include the C/P endorsed permit number
and the associated QS allocation percentage that will be abandoned.
Either the C/P-endorsed permit owner or an authorized representative of
the C/P-endorsed permit owner must sign the request. C/P-endorsed
permit owners choosing to utilize the abandonment option will
permanently relinquish to NMFS any right to the abandoned C/P-endorsed
permit, and the QS associated with that permit will be redistributed as
described under paragraph (h)(5)(ii) of this section. No compensation
will be due for any abandoned permit, or associated QS or QP.
(iv) Review of C/P-permit ownership interest and accumulation
limits. NMFS may request additional information from C/P-permit owners
as necessary to verify compliance with accumulation limits in the event
of C/P coop failure and conversion to IFQ fishery. If NMFS discovers
through review of the Trawl Identification of Ownership Interest Form
that a person is not in compliance with accumulation limits, the person
will be subject to divestiture provisions specified in paragraph
(h)(5)(ii) of this section.
(v) Definition of Ownership or Control. For the purpose of
determining ownership or control a person or entity has over a C/P
endorsed permit, all of the following criteria apply:
(A) The person or entity has the right to direct, or does direct,
in whole or in part, the business of the entity to which the permits
are registered, with the exception of those activities allowed under
paragraphs (h)(5)(v)(C) and (G) of this section.
(B) The person or entity has the right to limit the actions of or
replace, or does limit the actions of or replace, the chief executive
officer, a majority of the board of directors, any general partner, or
any person serving in a management capacity of the entity to which the
C/P permits are registered, with the exception of those activities
allowed under paragraphs (h)(5)(v)(C) and (G) of this section.
(C) With the exception of banks and other financial institutions
that rely on permits as collateral for loans as described under
paragraphs (h)(5)(v)(G) of this section, the person or entity has the
right to direct, or does direct, and/or the right to prevent or delay,
or does prevent or delay, the transfer of the C/P permit associated QS,
or the resulting QP.
(D) The person or entity, through loan covenants or any other
means, has the right to restrict, or does restrict, and/or has a
controlling influence over the day to day business activities or
management policies of the entity to which the permits are registered,
with the exception of those activities allowed under paragraphs
(h)(5)(v)(C) and (G) of this section.
(E) The person or entity has the right to restrict, or does
restrict, any activity related to the C/P permit, associated QS or the
resulting QP, including, but not limited to, use of permits, or
associated QS, or disposition of fish harvested and processed under the
resulting QP, with the exception of those activities allowed under
paragraphs (h)(5)(v)(C) and (G) of this section.
(F) The person or entity has the right to control, or does control,
the management of, or to be a controlling factor in, the entity to
which the C/P permit, associated QS, or the resulting QP, are
registered, with the exception of those activities allowed under
paragraphs (h)(5)(v)(C) and (G) of this section.
(G) With the exception of banks and other financial institutions
that rely on permits as collateral for loans, the person or entity has
the right to cause or prevent, or does cause or prevent, the
[[Page 68814]]
sale, lease or other disposition of C/P permits, associated QS, or the
resulting QP.
(1) To qualify for this exception for banks and other financial
institutions that rely on permits as collateral for loans, a bank or
other financial institution must be regularly or primarily engaged in
the business of lending, and must not be engaged in business with, or
be controlled by, entities whose primary business is the harvesting,
processing, or distribution of fish or fish products.
(2) Any state or federally chartered bank or financial institution
that meets the requirement of paragraph (h)(5)(v)(G)(1) of this section
does not need to submit additional information to NMFS.
(3) Any entity that is not a state or federally chartered bank or
financial institution must submit a letter requesting the exception and
disclose the identity and interest share of any shareholder with a 2
percent or more ownership interest in the lender through submission of
the Trawl Identification of Ownership Interest Form (see paragraph
(e)(1)(iv) of this section). The lender must make subsequent annual
submissions of the letter and Trawl Identification of Ownership
Interest Form to maintain the exception. Letters requesting the
exception and complete Trawl Identification of Ownership Interest Forms
may be submitted to NMFS, West Coast Region, Permits Office, ATTN:
Fisheries Permit Office, Bldg. 1, 7600 Sand Point Way NE, Seattle, WA
98115. NMFS will only accept complete applications.
(H) The person or entity has the ability through any means
whatsoever to control or have a controlling influence over the entity
to which a permit associated QS is registered, with the exception of
those activities allowed under paragraphs (h)(5)(v)(C) and (G) of this
section.
[FR Doc. 2019-27074 Filed 12-16-19; 8:45 am]
BILLING CODE 3510-22-P