[Federal Register Volume 61, Number 64 (Tuesday, April 2, 1996)]
[Proposed Rules]
[Pages 14547-14550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7988]



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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 676

[Docket No. 960321089-6089-01; I.D. 031396B]
RIN 0648-AG41


Limited Access Management of Federal Fisheries In and Off of 
Alaska; Allow Processing of Non-Individual Fishing Quota Species

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 that would implement Amendment 33 
to the Fishery Management Plan (FMP) for the Groundfish Fishery of the 
Bering Sea and Aleutian Islands Area (BSAI) and Amendment 37 to the 
Fishery Management Plan for Groundfish of the Gulf of Alaska (GOA). 
These amendments are necessary to allow fuller use of the fishery 
resources in and off of Alaska. This action is intended to allow 
persons that are authorized to harvest individual fishing quota (IFQ) 
sablefish based on an annual allocation of IFQ resulting from sablefish 
quota share (QS) assigned to categories of catcher vessels equal or 
greater than 60 ft (18.3 m) in length overall to process species other 
than IFQ halibut and IFQ sablefish.

DATES: Comments must be received by May 17, 1996.

ADDRESSES: Comments must be sent to Ronald J. Berg, Chief, Fisheries 
Management Division, Alaska Region, NMFS, Room 453, 709 W. 9th Street, 
Juneau, AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attention: Lori 
J. Gravel. Copies of the Environmental Assessment/Regulatory Impact 
Review (EA/RIR) for this action may be obtained from the above address.

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

SUPPLEMENTARY INFORMATION:

Background

    Beginning with the 1995 fishing season, the Pacific halibut 
(Hippoglossus stenolepis) and sablefish (Anoplopoma fimbria) fixed gear 
fisheries in the IFQ regulatory areas defined in 50 CFR 676.11 have 
been managed under the IFQ Program. The IFQ Program is a regulatory 
regime designed to promote the conservation and management of these 
fisheries and to further the objectives of the Magnuson Fishery 
Conservation and Management Act and the Northern Pacific Halibut Act. 
Persons holding QS, which represents a transferable harvest privilege, 
receive an annual allocation of IFQ. These persons are authorized to 
harvest, within specified limitations, IFQ species. Further information 
on the implementation of the IFQ Program, and the rationale supporting 
it, is contained in the preamble to the final rule implementing the IFQ 
Program published in the Federal Register, November 9, 1993 (58 FR 
59375). Additions and/or changes to the final rule implementing the IFQ 
Program were published June 1, 1994 (59 FR 28281); August 24, 1994 (59 
FR 43502), corrected October 13, 1994 (59 FR 51874); October 7, 1994 
(59 FR 51135); February 2, 1995 (60 FR 6448); March 3, 1995 (60 FR 
11916); March 6, 1995 (60 FR 12152); May 5, 1995 (60 FR 22307); August 
8, 1995 (60 FR 40304); August 31, 1995 (60 FR 45378); and November 28, 
1995 (60 FR 58528).
    Amendments 33 and 37 would allow persons who are authorized to 
harvest IFQ sablefish based on an annual allocation of IFQ resulting 
from sablefish QS assigned to vessel categories B or C to process 
species other than IFQ halibut and IFQ sablefish. Changes to the 
regulatory text of the IFQ Program would be necessary to implement this 
new policy, if it is approved. The definitions of ``freezer vessel'' 
and ``catcher vessel'' would be removed and a definition of 
``processing'' would be added. References to the removed definitions 
would be replaced with alternative language. A provision would be added 
to allow the processing of fish, other than IFQ halibut and IFQ 
sablefish, onboard vessels on which persons are harvesting IFQ 
sablefish based on an annual allocation of IFQ resulting from sablefish 
QS assigned to vessel categories B and C (catcher vessels that are 
greater than 60 ft (18.3 m) length overall). A detailed explanation of 
the proposed changes follows:

Removal of the ``Freezer Vessel'' and ``Catcher Vessel'' 
Definitions

    After evaluating the effects that Amendments 33 and 37 would have 
on the IFQ Program, NMFS determined that the definitions of ``freezer 
vessel'' and ``catcher vessel'' at Sec. 676 subparts B and C are 
unnecessary and now proposes their removal. NMFS proposes to replace 
these definitions with the same definition of ``processing'' found at 
Secs. 672.2 and 675.2.
    This proposed definition would be important to the revised 
specifications of vessel categories at Sec. 676.20(a)(2). Vessel 
category A, currently described as ``freezer vessels of any length,'' 
would be changed to vessels of any length authorized to process IFQ 
species. QS and the resulting IFQ is designated by IFQ species; 
therefore, a person could only process the IFQ species designated on 
the IFQ permit (i.e., IFQ halibut or IFQ sablefish). The authorization 
to process IFQ species is an inherent characteristic of QS assigned to 
vessel category A. This determination was made at initial issuance 
based on criteria found at Sec. 676.20(c). The other vessel categories 
(B, C, and D) found at Sec. 676.20(a)(2) also would not refer to the 
removed definitions.

Other Changes to the Regulations Due to the Removal of the 
``Freezer Vessel'' and ``Catcher Vessel'' Definitions

    As explained above, Sec. 676.20(a)(2) would no longer refer to 
freezer vessels or catcher vessels, but rather would describe vessel 
categories in terms of: (1) Vessel length; (2) specific species 
designations (i.e., vessel category D for IFQ halibut only); and (3) 
authorization to process IFQ species. Similarly, any other references 
in Sec. 676 subparts B and C to freezer vessels or catcher vessels 
would be removed.
    For example, Sec. 676.16(o) would prohibit persons from having 
processed and unprocessed IFQ species on board a vessel during the same 
trip. This would replace the current prohibition on operating as a 
catcher vessel and a freezer vessel during the same trip. This

[[Page 14548]]
change, along with the addition of Sec. 676.22(k), would allow a person 
who is authorized to harvest IFQ sablefish based on an annual 
allocation of IFQ resulting from sablefish QS assigned to vessel 
categories B or C to process fish other than IFQ halibut or IFQ 
sablefish, a behavior consistent with the Council's intent in proposing 
Amendments 33 and 37. Currently, a person who is authorized to harvest 
IFQ sablefish based on an annual allocation of IFQ resulting from 
sablefish QS assigned to vessel categories B or C is not allowed to 
process fish other than IFQ halibut or IFQ sablefish on board the 
harvesting vessel, because the definition of freezer vessel included 
the processing of any fish, whether it were IFQ species or not. Other 
sections in which the specific vessel categories would replace 
references to freezer vessels and catcher vessels are: 
Secs. 676.21(f)(1) through (4), and (g); and Secs. 676.22(i), (i)(1), 
(i)(2), (j), (j)(1), and (j)(4).

Processing Fish Other Than IFQ Halibut or IFQ Sablefish

    A new paragraph, Sec. 676.22(k), would be added to allow processing 
of fish, other than IFQ halibut or IFQ sablefish, on board the 
harvesting vessel by persons who are authorized to harvest IFQ 
sablefish based on an annual allocation of IFQ resulting from sablefish 
QS assigned to vessel categories B or C. Without this proposed change, 
fish, other than IFQ halibut or IFQ sablefish, could not be processed 
on board the harvesting vessel if, along with that fish, IFQ sablefish 
were harvested by a person who is authorized to harvest IFQ sablefish 
based on an annual allocation of IFQ resulting from sablefish QS 
assigned to vessel categories B and C. The current prohibition on 
processing fish, other than IFQ halibut or IFQ sablefish, on category B 
or C vessels has resulted in the unanticipated waste of fish caught 
incidentally with IFQ sablefish because sablefish can be preserved 
longer on ice than some incidentally caught fish (e.g., Pacific cod). 
The longer ``shelf life'' of fresh sablefish allows a typical sablefish 
longline trip to exceed the time period in which fish other than IFQ 
halibut or IFQ sablefish maintains sufficient quality to market as 
fresh fish. This often results in the discard of some or all 
incidentally caught fish. Also, persons are required to retain Pacific 
cod and rockfish caught incidentally to IFQ sablefish. This forces 
persons who are authorized to harvest IFQ sablefish based on an annual 
allocation of IFQ resulting from sablefish QS assigned to vessel 
categories B and C to keep Pacific cod and rockfish caught incidentally 
with IFQ sablefish, even though the value of the Pacific cod and 
rockfish is diminished during a long sablefish trip. The Council 
intended that Amendments 33 and 37 address the lost revenue that occurs 
because fish other than IFQ halibut and IFQ sablefish are discarded, or 
if not discarded, landed in poor condition, due to the current 
prohibition on processing fish, other than IFQ halibut and IFQ 
sablefish.
    Section 676.22(i)(3) would be unnecessary with the addition of 
Sec. 676.22(k) and the removal of the definitions of ``freezer vessel'' 
and ``catcher vessel.'' Furthermore, some of the provisions in 
Sec. 676.22(i)(3) were contrary to the purposes of Amendments 33 and 
37. For example, a person could not harvest IFQ sablefish with IFQ 
resulting from sablefish QS assigned to vessel categories B or C if 
``frozen or otherwise processed fish products'' were on the vessel, 
whether the frozen or otherwise processed fish was IFQ halibut or IFQ 
sablefish, or fish other than those species. The intent of the proposed 
action is to allow persons to harvest IFQ sablefish with IFQ resulting 
from sablefish QS assigned to vessel categories B or C, even if frozen 
or otherwise processed fish other than IFQ halibut or IFQ sablefish are 
on board the harvesting vessel.
    The authorization to process fish, other than IFQ halibut or IFQ 
sablefish, would not extend to persons who are authorized to harvest 
IFQ halibut based on an annual allocation of IFQ resulting from halibut 
QS assigned to vessel categories B, C, or D. The Council declined to 
extend the IFQ sablefish exemption to IFQ halibut due to the socio-
economic differences between the fisheries. The halibut fishery 
characteristically is prosecuted by local vessels that do not have on-
board processing capabilities. The Council does not intend to change 
this characteristic of the halibut fishery. Also, not extending the 
authorization to process fish other than IFQ sablefish and IFQ halibut 
to persons that are authorized to harvest IFQ halibut based on an 
annual allocation of IFQ resulting from halibut QS assigned to vessel 
categories B, C, or D is consistent with one of the objectives of the 
IFQ Program, which is to maintain a diverse fleet where all segments, 
and the social structures associated with those segments, continue to 
exist. The prohibition on processing on board the harvesting vessel by 
persons harvesting IFQ species with IFQ resulting from QS assigned to 
specific vessel categories is one method of accomplishing that 
objective. The Council expressed concern that if the owners of large, 
industrial-type vessels that process their catch could harvest IFQ 
species with IFQ resulting from QS assigned to vessel categories B, C, 
or D while processed fish is on board, these owners would acquire the 
majority of the ``catcher vessel'' QS. The result would be an increase 
in harvesting of IFQ species on large, industrial-type vessels that 
process their catch and a decrease in harvesting of IFQ species on 
small vessels that do not have processing capabilities. These small 
vessels that do not have processing capabilities are more likely to 
make landings at local coastal communities. The Council determined that 
phasing out small vessels that do not have processing capabilities, and 
which would not be able to compete with the large, industrial-type 
vessels that process their catch for available IFQ, would have a 
detrimental socio-economic impact on coastal communities. This is 
especially true for halibut IFQ. Many coastal communities rely on the 
delivery of halibut harvested by persons operating small vessels that 
do not have processing capabilities as a source of revenue.

Classification

    An EA/RIR was prepared for this proposed rule that describes the 
management background, the purpose and need for action, the management 
action alternatives, and the social impacts of the alternatives. The 
EA/RIR estimates the total number of small entities affected by this 
action, and analyzes the economic impact on those small entities. Based 
on the analysis, it was determined that this proposed rule does not 
have a significant economic impact on a substantial number of small 
entities, and the Assistant General Counsel for Legislation and 
Regulation of the Department of Commerce so certified to the Chief 
Counsel for Advocacy of the Small Business Administration. The EA/RIR 
also supports the finding of no significant impact on the human 
environment by this action. Copies of the EA/RIR can be obtained from 
NMFS (see ADDRESSES).
    This proposed rule will not change the collection of information 
approved by the Office of Management and Budget, OMB Control Number 
0648-0272, for the Pacific halibut and sablefish 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

    Alaska, Fisheries, Reporting and recordkeeping requirements.


[[Page 14549]]

    Dated: March 27, 1996.
Charles Karnella,
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 676.11 is amended by removing the definitions of 
``Catcher vessel'' and ``Freezer vessel'' and by adding the definition 
of ``Processing'', in alphabetical order, to read as follows:


Sec. 676.11  Definitions.

* * * * *
    Processing, or to process, means the preparation of fish to render 
it suitable for human consumption, industrial uses, or long-term 
storage, including but not limited to cooking, canning, smoking, 
salting, drying, freezing, or rendering into meal or oil, but does not 
mean icing, bleeding, heading, or gutting.
* * * * *
    3. In Sec. 676.16 paragraph (o) is revised to read as follows:


Sec. 676.16  General prohibitions.

* * * * *
    (o) Have processed and unprocessed IFQ species on board a vessel 
during the same trip except when fishing exclusively with IFQ derived 
from vessel category A quota shares.
* * * * *
    4. In Sec. 676.20 paragraph (a)(2) is revised to read as follows:


Sec. 676.20  Individual allocations.

* * * * *
    (a) * * *
    (2) Vessel categories. Quota shares assigned to vessel categories 
include:
    (i) Category A quota share, which authorizes an IFQ cardholder to 
catch and process IFQ species on a vessel of any length;
    (ii) Category B quota share, which authorizes an IFQ cardholder to 
catch IFQ species on a vessel greater than 60 ft (18.3 m) in length 
overall;
    (iii) Category C quota share, which authorizes an IFQ cardholder to 
catch IFQ sablefish on a vessel less than or equal to 60 ft (18.3 m) in 
length overall, or which authorizes an IFQ cardholder to catch IFQ 
halibut on a vessel greater than 35 ft (10.7 m) but less than or equal 
to 60 ft (18.3 m) in length overall; and
    (iv) Category D quota share, which authorizes an IFQ cardholder to 
catch IFQ halibut on a vessel less than or equal to 35 ft (10.7 m) in 
length overall.
* * * * *
    5. In Sec. 676.21 paragraphs (f) and (g) are revised to read as 
follows:


Sec. 676.21  Transfer of QS and IFQ.

* * * * *
    (f) Transfer restrictions. (1) Except as provided in paragraph (e) 
or paragraph (f)(2) of this section, only persons who are IFQ crew 
members, or that were initially assigned QS assigned to vessel 
categories B, C, or D, and meet the other requirements in this section 
may receive QS assigned to vessel categories B, C, or D.
    (2) Except as provided in paragraph (f)(3) of this section, only 
persons who are IFQ crew members may receive QS assigned to vessel 
categories B, C, or D in IFQ regulatory area 2C for halibut or in the 
IFQ regulatory area east of 140 deg. W. long. for sablefish.
    (3) Individuals who were initially issued QS assigned to vessel 
categories B, C, or D may transfer that QS to a corporation that is 
solely owned by the same individual. Such transfers of QS assigned to 
vessel categories B, C, or D in IFQ regulatory area 2C for halibut or 
in the IFQ regulatory area east of 140 deg. W. long. for sablefish are 
governed by the use provisions of Sec. 676.22(i); the use provisions 
pertaining to corporations at Sec. 676.22(j) do not apply in this 
situation.
    (4) The Regional Director will not approve an Application for 
Transfer of QS assigned to vessel categories B, C, or D subject to a 
lease or any other condition of repossession or resale by the person 
transferring QS, except as provided in paragraph (g) of this section, 
or by court order, operation of law, or as part of a security 
agreement. The Regional Director may request a copy of the sales 
contract or other terms and conditions of transfer between two persons 
as supplementary information to the transfer application.
    (g) Leasing QS (applicable until January 2, 1998). A person may not 
use IFQ resulting from a QS lease for harvesting halibut or sablefish 
until an Application for Transfer complying with the requirements of 
paragraph (b) of this section and the lease agreement are approved by 
the Regional Director. A person may lease no more than 10 percent of 
that person's total QS assigned to vessel categories B, C, or D for any 
IFQ species in any IFQ regulatory area to one or more persons for any 
fishing year. After approving the Application for Transfer, the 
Regional Director will change any IFQ accounts affected by an approved 
QS lease and issue all necessary IFQ permits. QS leases must comply 
with all transfer requirements specified in this section. All leases 
expire on December 31 of the calendar year for which they are approved.
* * * * *
    6. In Sec. 676.22 paragraph (i), paragraph (j) introductory text, 
paragraphs (j)(1) and (j)(4) are revised, and paragraph (k) is added to 
read as follows:


Sec. 676.22  Limitations on use of QS and IFQ.

* * * * *
    (i) Use of IFQ resulting from QS assigned to vessel categories B, 
C, or D by individuals. In addition to the requirements of paragraph 
(c) of this section, IFQ cards issued for IFQ resulting from QS 
assigned to vessel categories B, C, or D must be used only by the 
individual who holds the QS from which the associated IFQ is derived, 
except as provided in paragraph (i)(1) of this section.
    (1) An individual who receives an initial allocation of QS assigned 
to vessel categories B, C, or D does not have to be aboard and sign IFQ 
landing reports if that individual owns the vessel on which IFQ 
sablefish or halibut are harvested, and is represented on the vessel by 
a master employed by the individual who received the initial allocation 
of QS.
    (2) The exemption provided in paragraph (i)(1) of this section does 
not apply to individuals who receive an initial allocation of QS 
assigned to vessel categories B, C, or D for halibut in IFQ regulatory 
area 2C or for sablefish QS in the IFQ regulatory area east of 140 deg. 
W. long., and this exemption is not transferrable.
    (j) Use of IFQ resulting from QS assigned to vessel categories B, 
C, or D by corporations and partnerships. A corporation or partnership 
that receives an initial allocation of QS assigned to vessel categories 
B, C, or D may use the IFQ resulting from that QS and any additional QS 
acquired within the limitations of this section provided the 
corporation or partnership owns the vessel on which its IFQ is used, 
and it is represented on the vessel by a master employed by the 
corporation or partnership that received the initial allocation of QS. 
This provision is not transferrable and does not apply to QS assigned 
to vessel categories B, C, or D for halibut in IFQ regulatory area 2C 
or for sablefish in the IFQ regulatory area east of 140 deg. W. long. 
that is transferred to a corporation or partnership. Such transfers of 
additional QS within these areas must be to an individual pursuant to 
Sec. 676.21(b) and be used pursuant to paragraphs (c) and (i) of this 
section.

[[Page 14550]]

    (1) A corporation or partnership, except for a publicly-held 
corporation, that receives an initial allocation of QS assigned to 
vessel categories B, C, or D loses the exemption provided under 
paragraph (j) of this section on the effective date of a change in the 
corporation or partnership from that which existed at the time of 
initial allocation.
* * * * *
    (4) QS assigned to vessel categories B, C, or D and IFQ resulting 
from that QS held in the name of a corporation or partnership that 
changes, as defined in this paragraph (j), must be transferred to an 
individual, as prescribed in Sec. 676.21 before it may be used at any 
time after the effective date of the change.
    (k) Processing of fish other than IFQ halibut and IFQ sablefish. 
Fish other than IFQ halibut or IFQ sablefish may be processed on a 
vessel on which persons:
    (1) Are authorized to harvest IFQ halibut or IFQ sablefish based on 
allocations of IFQ resulting from QS assigned to vessel category A; or
    (2) Are authorized to harvest IFQ sablefish based on allocations of 
IFQ resulting from QS assigned to vessel categories B or C unless any 
person aboard the vessel is authorized to harvest IFQ halibut based on 
allocations of IFQ resulting from QS assigned to vessel categories B, 
C, or D.
[FR Doc. 96-7988 Filed 3-28-96; 3:46 pm]
BILLING CODE 3510-22-F