[Federal Register Volume 59, Number 188 (Thursday, September 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24136]


[[Page Unknown]]

[Federal Register: September 29, 1994]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 676

[Docket No. 940845-4245; I.D. 081794A]
RIN 0648-AG98

 

Limited Access Management of Federal Fisheries In and Off of 
Alaska

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS issues a proposed rule to implement a regulatory 
amendment affecting the Pacific halibut and sablefish fisheries in and 
off the State of Alaska (Alaska or State). This action explains the 
methodology used to calculate Community Development Quota (CDQ) 
compensation for the Pacific halibut and sablefish individual fishing 
quota (IFQ) program and would codify a systematic procedure for CDQ 
compensation.

DATES: Comments must be received no later than November 14, 1994.

ADDRESSES: Comments may be sent to Ronald J. Berg, Chief, Fisheries 
Management Division, Alaska Region, NMFS, 709 W. 9th, Room 453, Juneau, 
AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attention: Lori J. 
Gravel. Copies of this proposed rule and the Regulatory Impact Review 
(RIR) may be obtained from the North Pacific Fishery Management 
Council, P.O. Box 103136, Anchorage, AK 99510.

FOR FURTHER INFORMATION CONTACT: John Lepore, 907-586-7228.

SUPPLEMENTARY INFORMATION:

Background

    The Pacific halibut and sablefish CDQ program was designed to 
assist in the revitalization of rural communities in Western Alaska by 
providing those communities with access to fishery resources within 
their geographical proximity. The CDQ program was developed under the 
authority, and is consistent with the management objectives, of the 
Magnuson Fishery Conservation and Management Act (Magnuson Act) and the 
Northern Pacific Halibut Act (Halibut Act).

CDQ Compensation Formula

    The CDQ compensation formula would compensate persons for 
reductions in the amount of Pacific halibut and sablefish available for 
harvest with IFQ in CDQ areas resulting from allocations of those 
fishery resources to the CDQ program. Compensated persons would be 
those who are initially issued quota share (QS) in CDQ areas. This one-
time compensation adjustment would be in the form of QS in each of the 
non-CDQ areas.
    The CDQ compensation formula would affect all persons who are 
initially issued QS, including those persons who did not participate 
historically in the Pacific halibut or sablefish fisheries in CDQ 
areas. The North Pacific Fishery Management Council (Council) intended 
that all persons who are initially issued QS share the burden of 
compensating persons for reductions in the amount of Pacific halibut 
and sablefish available for harvest with IFQ in CDQ areas. This would 
be accomplished by distributing the compensation burden among all 
persons who would be initially issued QS by reducing their harvest 
privilege by a fixed percentage. Even persons who receive compensation 
would share the burden.
    The amount of compensation QS a person receives would equal the 
reduction in the QS amount of harvestable fishery resources that person 
would receive in a CDQ area, minus the fixed percentage reduction 
shared by all persons who would be initially issued QS. Persons 
eligible for compensation would receive a portion of the total amount 
of compensation QS in each non-CDQ area. The compensation QS in each 
non-CDQ area would be proportional to the size of the QS pool of that 
area. For example, a person who would be eligible for compensation QS 
for halibut would receive the greatest amount of compensation QS in 
area 3A, which has the largest QS pool, and the least amount in area 
4A, which has the smallest QS pool.

CDQ Compensation Formula Methodology

    The following describes how the CDQ compensation formula operates. 
All total allowable catch (TAC) amounts are the TAC average for the 
years 1988-1994. First, (1) add the CDQ, based on the TAC average, from 
all management areas for that species to calculate total CDQ for that 
species, (2) add the TAC from all management areas for that species to 
calculate total TAC for that species, and (3) divide the total CDQ by 
the total TAC. This provides the proportion (percentage) of the total 
TAC going to the CDQ program for each species.
    Second, multiply the proportion (percentage) of the total TAC going 
to the CDQ program (calculated above) by the TAC for each management 
area. This provides the total pounds of fish that will be used for CDQ 
compensation in that management area.
    Third, divide the original QS (quota share pool) for each 
management area by the part of the TAC that will not be used for 
compensation in that area. This provides the QS per pound of non-
compensating TAC.
    Fourth, multiply the part of the TAC in each area that will be used 
for compensation by the QS per pound of noncompensating TAC for that 
area. This provides the QS created and used for compensation in that 
area.
    Fifth, for each person with QS in a CDQ area, (1) total the IFQ 
lost by that person to CDQ in all areas and then (2) multiply that 
total by the quantity one minus the sum of the proportion of the total 
TAC going to the CDQ program for each species. This provides the pounds 
used to determine the amount of compensation QS a person will receive 
for that species.
    Sixth, sum the pounds used to determine the amount of compensation 
QS each person will receive for that species. This provides the total 
pounds used to determine the compensation QS for all persons for that 
species.
    Seventh, divide the pounds used to determine the amount of 
compensation QS each person will receive for a species (from step 5) by 
the total pounds used to determine the compensation QS for all persons 
for a species (from step 6). This provides the proportion of new QS in 
each area that a person should receive as compensation.
    Eighth, and finally, multiply the proportion of the new QS in each 
area that the person should receive as compensation by the new QS 
available for compensation in each area (calculated in step 4). This 
provides the QS a person would receive as compensation in each area.

Example

    If a person was initially issued 5,000 QS for Pacific halibut in 
regulatory Area 4E, that person would have all 5,000 QS transferred 
into CDQ compensation QS. This is because 100 percent of the TAC of 
Pacific halibut in regulatory Area 4E is allocated to the CDQ program. 
To calculate how much CDQ compensation QS the person would receive in 
one of the non-CDQ areas (Area 2C is used in this example):
    1. Add CDQ from all areas for Pacific halibut (based on the 1988-
1994 TAC average). The resulting sum is 1,038,571 lb (471.09 mt).
    2. Add the TAC from all areas for Pacific halibut (based on the 
1988-1994 average). The resulting sum is 50,581,429 lb (22,943.35 mt).
    3. Divide the resulting sum from step 1 by the resulting sum in 
step 2. The resulting quotient is 0.0205 (or 2.05 percent) and is the 
proportion of the total TAC allocated to the CDQ program for Pacific 
halibut.
    4. Multiply the resulting quotient in step 3 by the 1988-1994 TAC 
average for Pacific halibut in area 2C, which is 9,700,000 lb (4,399.85 
mt). The resulting product is 198,850 lb (90.20 mt) and is the total 
pounds of Pacific halibut that will be used as CDQ compensation from 
area 2C.
    5. Divide the QS pool for area 2C, 57,575,315, by the TAC in that 
area that will not be used as compensation, 9,501,150 lb (4,309.65 mt). 
The resulting quotient, 6.06, is the QS per pound of noncompensating 
TAC.
    6. Multiply the total pounds of Pacific halibut that will be used 
as compensation from area 2C, 198,850 lb (90.2 mt), by the QS per pound 
of non-compensating TAC, which is 6.06. The resulting product, 
1,205,031, is how many QS will be created in area 2C to use as 
compensation.
    7. Multiply the proportion of the total TAC going to the CDQ 
program for Pacific halibut, 0.0205, by the amount of IFQ the person 
loses to the CDQ program in area 4E, which is 3,239 lb (1.5 mt). The 
resulting product is 66.
    8. Subtract the resulting product in step 7 from the amount of IFQ 
the person loses to the CDQ program in area 4E, which is 3,239 lb (1.5 
mt). The resulting difference is 3,173 lb (1.4 mt).
    9. Multiply the proportion of the total TAC going to the CDQ 
program for Pacific halibut, 0.0205, by the total lost IFQ to CDQ in 
all areas for Pacific halibut, which is 1,038,571 lb (471.1 mt). The 
resulting product is 21,291 lb (9.7 mt).
    10. Subtract the resulting product in step 9 from the total lost 
IFQ to CDQ in all areas for Pacific halibut, which is 1,038,571 lb 
(471.1 mt). The resulting difference is 1,017,280 lb (9.7 mt).
    11. Divide the resulting difference in step 8 by the resulting 
difference in step 10. The resulting quotient, 0.0031, is the 
proportion of new QS in area 2C the person will receive as 
compensation.
    12. Multiply the resulting quotient in step 11 by the amount of new 
QS created in area 2C to be used as compensation, which is 1,205,031. 
The resulting product, 3,736, is the amount of QS the person will 
receive as compensation in area 2C.
    This process would be repeated for each non-CDQ area by using the 
appropriate numbers for that area. (NOTE: This example uses data that 
may be changed before the CDQ compensation QS adjustment. For example, 
the QS pools, and therefore the resulting CDQ compensation QS, may be 
different than in this calculation once all applications have been 
received by NMFS and the initial QS pool is set on October 17, 1994. 
Although the eventual calculation may employ different numbers, the 
methodology of the calculation is accurately demonstrated.)
    The CDQ compensation formula would be included in the regulations 
for the IFQ program at Sec. 676.24(i)(3). The formula would replace the 
current language contained in this paragraph that established January 
31 of the first year of fishing under the IFQ program as the date for 
determining the QS pool for purposes of establishing compensation for 
CDQ allocations. Eliminating January 31 from this paragraph would 
permit the issuance of compensation QS at an earlier date. Furthermore, 
under proposed regulations implementing Amendment 31 to the Fishery 
Management Plan (FMP) for the Groundfish Fisheries of the Bering Sea 
and Aleutian Islands Area and Amendment 35 to the FMP for Groundfish of 
the Gulf of Alaska, October 17, 1994, is being established as the 
specific date to determine the quota share pools. Proposed regulations 
to implement Amendments 31 and 35 were published in the Federal 
Register June 28, 1994 (59 FR 33272). Using October 17, 1994, rather 
than January 31, as the date to establish the QS pools would relieve a 
restriction by allowing persons who are initially issued QS more time 
to transfer QS prior to the first IFQ season. Also, using a specific 
date ensures that all persons are treated in a similar manner. NMFS 
would be particularly interested in receiving public comment on 
relieving this restriction.

Classification

    The RIR prepared for this rule incorporates by reference the final 
regulatory flexibility analysis (FRFA) prepared for the IFQ program, 
the program for which the CDQ compensation formula was designed. The 
FRFA supports the determination that the IFQ program may have a 
significant impact on a substantial number of small entities. Further 
information on the FRFA can be obtained by referring to the final rule 
for the IFQ program, published in the Federal Register November 9, 1993 
(58 FR 59375). The RIR and the FRFA are available for review (see 
ADDRESSES).
    A collection of information for the IFQ program was approved by the 
Office of Management and Budget, OMB control number 0648-0272. This 
action will not affect the collection-of-information requirements 
already approved for the IFQ program.
    This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.

List of Subjects in 50 CFR Part 676

    Fisheries, Reporting and recordkeeping requirements.

    Dated: September 23, 1994.
Samuel W. McKeen,
Acting Program Management Officer, National Marine Fisheries Service.

    For the reasons set out in the preamble, 50 CFR part 676 is 
proposed to be amended as follows:

PART 676--LIMITED ACCESS MANAGEMENT OF FEDERAL FISHERIES IN AND OFF 
OF ALASKA

    1. The authority citation for 50 CFR part 676 continues to read as 
follows:

    Authority: 16 U.S.C. 773 et seq. and 1801 et seq.

    2. Section 676.24 is amended by revising paragraph (i)(3) to 
read as follows:


Sec. 676.24  Western Alaska Community Development Quota Program.

* * * * *
    (i) * * *
    (3) Compensation of halibut and sablefish QS foregone due to the 
CDQ program will occur only in the first year of fishing under the IFQ 
program and will be calculated for each CDQ area using the following 
formula:

QN = (QC x QSPN x RATE) / (SUMCDQ- 
[RATE x SUMTAC])([1-RATE] -TAC)(QSPC x [CDQPCT-RATE])

where:
    QN=quota share in non-CDQ area
    QC=quota share in CDQ area
    QSPN=quota share pool in non-CDQ area
    RATE=SUMCDQ/total allowable catch for all CDQ and non-CDQ 
areas
    TAC=total allowable catch (average of the TAC for 1988-1994) for 
CDQ area
    QSPC=quota share pool in CDQ area
    CDQPCT=CDQ percentage for CDQ area
    SUMCDQ=sum [total allowable catch for CDQ 
area x CDQPCT] (based on average TAC)
    SUMTAC=sum [total allowable catch for CDQ area] (based on 
average TAC)
* * * * *
[FR Doc. 94-24136 Filed 9-28-94; 8:45 am]
BILLING CODE 3510-22-W