[Federal Register Volume 61, Number 79 (Tuesday, April 23, 1996)]
[Notices]
[Pages 17879-17881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9906]



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DEPARTMENT OF COMMERCE
[Docket No. 960412111-6111-01; I.D. 040596B]
RIN 0648-ZA20


West Coast Salmon Fisheries; Northwest Emergency Assistance Plan 
(NEAP)

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

ACTION: Notice; request for comments.

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SUMMARY: On August 2, 1995, the Secretary of Commerce (Secretary) 
declared that a fishery resource disaster still persists in the Pacific 
States of California (north of San Francisco), Oregon, and Washington 
(excluding Puget Sound). Pursuant to this declaration, the Secretary 
has provided an additional $13 million in assistance to the affected 
fishermen in the Pacific Northwest. The additional funds will be used 
to continue funding the Northwest Emergency Assistance Plan (NEAP). The 
purpose of this action is to notify the public of new aspects of the 
NEAP and to solicit comments on proposed changes to the NEAP.

DATES: Written comments must be received by May 23,1996.

ADDRESSES: Comments should be sent to Stephen P. Freese, Northwest 
Emergency Assistance Plan, Trade and Industry Services Division, 
Northwest Regional Office, National Marine Fisheries Service, BIN 
C15700, 7600 Sand Point Way NE, Seattle, WA 98115.

FOR FURTHER INFORMATION CONTACT: Stephen Freese, (206) 526-6113.

SUPPLEMENTARY INFORMATION:

Background

    On May 26, 1994, the Secretary declared a fishery resource 
disaster, and authorized the expenditure of $12 million in financial 
assistance for the NEAP, under the authority of section 308(d) of the 
Interjurisdictional Fisheries Act (IFA); (16 U.S.C. 1407(d)). Pursuant 
to the Secretary's declaration, NMFS established three NEAP programs: 
(1) A habitat restoration jobs program ($6 million), administered by 
the U.S. Department of Agriculture's Natural Resources Conservation 
Service (USDA/NRCS); (2) a salmon fishing license buy out program ($4 
million), which has been completed by the Washington Department of Fish 
and Wildlife (WDFW); and (3) a data collection jobs program ($2 
million), administered by the Pacific States Marine Fisheries 
Commission (PSMFC). These programs provided financial assistance to the 
fishermen who suffered losses due to the fishery resource disaster that 
arose from factors that included drought, flooding, minimal snowpack, 
and an extreme El Nino ocean warming event.
    On August 2, 1995, the Secretary declared that the fishery resource 
disaster continued in 1995 for the salmon fisheries of the Pacific 
States of California (north of San Francisco), Oregon, and Washington, 
excluding Puget Sound. In extending the disaster and determining its 
impacts, the Secretary considered the magnitude of the disaster in 
economic and social terms, in addition to the various natural factors 
causing the fishery resource disaster. Salmon stocks along the West 
Coast remain extremely depressed, and the fishery disaster has caused 
high levels of economic damage and social disruption. Therefore, NMFS 
will continue the NEAP to encompass the disaster period that extends 
from January 1, 1991 through December 31, 1995, and will continue to 
provide funding pursuant to the Federal Register notice that 
established the NEAP, published on October 11, 1994 (59 FR 51419), with 
subsequent minor amendments published on January 31, 1995, and June 22, 
1995 (60 FR 3908, 60 FR 32507). The original NEAP terms and conditions 
will be in effect until the proposed revisions to the NEAP that are 
contained in this notice are finalized and implemented.
    Of the $13 million in additional NEAP funding, NMFS will transfer 
$4.8 million to USDA/NRCS to continue its role as administrative 
intermediary for

[[Page 17880]]

the Habitat Restoration Jobs Program, and award $2.65 million to the 
PSMFC for the 1996 phase of the Data Collection Jobs Program. Both the 
USDA/NRCS and the PSMFC will use the same criteria as those established 
in the NEAP and set forth in October 11, 1994, Federal Register notice 
(59 FR 51419). If the revised criteria proposed in this notice are 
adopted, NMFS will amend the agreement with USDA and the grant to PSMFC 
accordingly, and the revised criteria will be effective from the date 
of publication of the final Federal Register notice announcing this 
program. NMFS has also allocated $5.25 million for the License Buy Out 
Program to continue to purchase licenses from fisheries that depend on 
chinook and coho salmon. NMFS proposes to implement this program 
through WDFW by June 1, 1996. NMFS proposes to maintain the same 
limitations in determining maximum bid amounts as currently employed in 
the NEAP. Reasons for using the same limitations include fairness to 
previous successful participants, reduced administrative costs, and 
reduced paperwork burden upon fishermen. NMFS is retaining $300,000 for 
administrative costs.
    Congress is currently considering amendments to the IFA. If such 
amendments are passed and can be applied retroactively, or if such 
amendments become law prior to publication of a final Federal Register 
notice announcing this program, the eligibility criteria may be subject 
to further change. Although NMFS may choose to maintain the current 
eligibility criteria to minimize disruption to the existing programs, 
or for other reasons, NMFS may change some or all of the eligibility 
limitations for certain programs. Such changes may mean that 
participation in the program would no longer be restricted to 
applicants with gross incomes under $2 million, financial assistance 
would no longer be limited to $100,000, and no calculation of uninsured 
loss would be necessary.

New Aspects to the NEAP Programs

    NMFS has determined that changes are required to certain aspects of 
the NEAP programs in order to ensure effective implementation. This 
notice serves to notify the public of those changes.
    The calculation of uninsured loss will change due to the expansion 
of the disaster period pursuant to the Secretary's 1995 disaster 
declaration and to new biological information on the state of the 
fishery in 1991. NMFS is extending the disaster period from 1992-1994 
to 1991-1995 based on a review of biological studies and on landings 
and ex-vessel revenue trends in ocean (Northern California, Oregon, and 
Washington) and Columbia River coho and chinook fisheries. Many, if not 
all, of the factors underlying the decline in the 1992-94 fisheries 
were present in 1991. The disaster period includes the year 1995 
pursuant to the Secretary's 1995 disaster declaration.
    Furthermore, as a result of the Secretary's expansion of the 
disaster and NMFS's efforts to improve the program, the term ``loss'', 
as defined in the NEAP published on January 31, 1994 (60 FR 5908), is 
redefined as a loss of income not subject to Federal or state 
compensation and determined by the following multi-step procedure. In 
Step 1, the applicant can select a base year from the years 1986 
through 1991. In Step 2, the applicant can select a comparison year 
from the years 1991 through 1995. Step 3 will remain the same, i.e., 
the comparison year must be less than the base year in order to show a 
loss. Step 4 of this procedure is now different from the procedure set 
forth in the January 31, 1994, Federal Register notice due to the 
expansion of the disaster period to the years 1991 through 1995. The 
amount of annual loss is now multiplied by five, as opposed to three, 
to account for this expansion.
    Finally, applicants can now use either their 1993, 1994, or 1995 
gross income to determine whether they meet the $25,000 or $50,000 
gross income cap.

Proposed Revisions to the NEAP Programs

    NMFS proposes to revise some of the limitations, terms, and 
conditions to address the new disaster declaration for the continuation 
of the NEAP. The intent of these revisions is to increase the number of 
fishermen eligible to receive assistance under the NEAP, as well as 
continue the conservation work already begun. Section 308(d) of the IFA 
requires the Secretary to solicit public comment on the limitations, 
terms, and conditions that the Secretary has determined are necessary 
to administer the NEAP. Accordingly, the public is requested to comment 
on the items below.

(1) Proposed Change to Minimum Amount of Commercial Fishing Income 
Earning Requirement

    An applicant must have earned at least $2,500 in commercial fishing 
income in the base year selected in determining loss. The decrease to 
$2,500 from $5,000 would provide crew members with greater 
accessibility to the program. The rest of the eligibility criteria 
would remain the same.

(2) Ability to Participate in All NEAP Programs

    Participants in the License Buy Out Program would not be excluded 
from participation in the Habitat Restoration and Data Collection Jobs 
Program. Therefore, a fisherman who sold a license under the License 
Buy Out Program could be employed under either of the Jobs Programs, as 
long as the total compensation did not exceed 75 percent of the 
fisherman's uninsured loss. Compensation includes all compensation 
earned from NEAP.

(3) Requirement for Fishermen to Possess Same Licenses in 1995 as Were 
Possessed in 1994

    NMFS proposes to exclude applicants from the License Buy Out 
Program who bought licenses in 1995. Such exclusion would limit 
applicants who speculated on the licenses in 1995 in anticipation of 
the revised License Buy Out program. Therefore, applicants to the 
License Buy Out Program who possessed one of the Washington State 
salmon licenses listed below in 1995 must also have possessed the same 
license(s) in 1994:
    (a) Salmon troll license
    (b) Salmon delivery license
    (c) Salmon gill net--Grays Harbor-Columbia River
    (d) Salmon gill net-- Willapa Bay-Columbia River
    (e) Salmon charter

(4) Alternative Bidding Options for the License Buy Out Program

    Option 1-- According to gear group, all eligible fishermen would 
submit new bids or verify that they wish to maintain their previous 
bids. Offer packages would be ranked. Starting with the lowest offers 
in each license type, licenses would be accepted and retired by WDFW.
    Option 2 --WDFW would purchase licenses from the pool of applicants 
for the NEAP License Buy Out Program, beginning with the lowest 
unsuccessful 1995 offer. The WDFW would purchase licenses until the 
remaining funds are insufficient for the entire next offer amount.
    Option 3--WDFW would purchase licenses beginning with the pool of 
applicants for the NEAP License Buy Out Program. Licensees who offered 
licenses in the NEAP, but were unsuccessful, would have an opportunity 
to sell their licenses for the last price paid per gear group. These 
amounts are: Salmon troll and delivery--$24,984, Salmon gill net--
$38,000, and Salmon charter--$21,300.

[[Page 17881]]

If any funds remain after purchase of licenses from the 1995 program 
applicants, 1996 program applications would be accepted as provided for 
in this section from persons who are eligible to participate, starting 
with the lowest offer. The WDFW would purchase licenses until the 
remaining funds are insufficient for the entire next offer amount.
    Option 4--This option is modeled conceptually on NMFS's Fishing 
Capacity Reduction Demonstration Program (FCRDP) for Northeast 
groundfish vessels, published in the Federal Register, June 22, 1995 
(60 FR 32504). Under the FCRDP, NMFS bought out both vessels and 
licenses, and bids were ranked by taking into consideration vessel 
performance. Under Option 4, WDFW would continue to buy out only 
licenses, but would establish a ranking system similar to that of the 
FCRDP. Bids would be ranked by license score, and the license score 
would be determined by dividing the bid by the applicant's uninsured 
loss, since the calculation of uninsured loss reflects vessel 
performance.
    Using the same limitations employed in the 1995 NEAP buy out 
program, the applicant would submit a bid that can range from $1.00 up 
to the maximum amount that the applicant can bid. The maximum amount 
that an applicant can bid is 2.25 times the difference between the 
highest gross income derived from salmon fishing during any calendar 
year 1986 through 1991 (which becomes the applicant's ``base year''), 
and the least amount of gross income derived from salmon fishing 
activities during any calendar year from 1992 through 1994 (which 
becomes the applicant's ``comparison year''). No bid can exceed 
$100,000 minus any Federal unemployment or NEAP related income already 
received.
    Using the definition of uninsured loss as defined by this notice, 
the applicant would also submit the amount of uninsured loss suffered 
as a result of the fishery disaster. Uninsured loss is 5 times the 
difference between the highest gross income derived from salmon fishing 
during any calendar year 1986 through 1991 (base year), and the least 
amount of gross income derived from salmon fishing activities during 
any calendar year from 1991 through 1995 (comparison year). The 
comparison year must be less than the base year. The applicant's bid 
amount would then be divided by the applicant's uninsured loss to 
determine the applicant's license score. The scores of all the 
applicants would be ranked from low to high with the lowest scores 
being purchased first.
    Provided below are three examples of this scoring process:
Example 1
    Step A. Applicant A submits a bid for $18,500.
    Step B. Applicant A has an uninsured loss of $29,670.
    Step C. The score for Applicant A is .6235 ($18,500 divided by 
$29,670).
Example 2
    Applicant B submits the same bid as Applicant A ($18,500). However, 
the uninsured loss for Applicant B is $42,680.
    Step A. Applicant B submits a bid for $18,500.
    Step B. Applicant B has an uninsured loss of $42,680.
    Step C. The score for Applicant B is .4335 ($18,500 divided by 
$42,680).
Example 3
    Applicant C submits a bid for $35,000. Applicant C's uninsured loss 
is $81,860.
    Step A. Applicant C submits a bid for $35,000.
    Step B. Applicant C has an uninsured loss of $81,860.
    Step C. The score for Applicant C is .4276 ($35,000 divided by 
$81,860).
    Even though Applicant C's bid is higher than that of Applicants A 
and B, Applicant C's score is lower because of the greater uninsured 
loss. Consequently, Applicant C would be selected over Applicants A or 
B, and Applicant B would be selected before Applicant A. In the 
instances where a choice must be made between two or more equally 
scored bids, applicants with the lowest bid (Step A) will be given 
preference.

Catalogue of Federal Domestic Assistance

    The NEAP is listed in the ``Catalogue of Federal Domestic 
Assistance'' under No.11.452, Unallied Industry Projects.

Classification

    This action has been determined to be not significant for purposes 
of E.O. 12866.
    Some of the activities mentioned in this notice are subject to the 
Paperwork Reduction Act (PRA). They have been approved by the Office of 
Management and Budget (OMB) under control number 0648-0288.
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to, a penalty for failure 
to comply with a collection of information subject to the requirements 
of the PRA unless that collection of information displays a currently 
valid OMB control number.

    Dated: April 17, 1996.
Gary Matlock,
Program Management Officer, National Marine Fisheries Service.
[FR Doc. 96-9906 Filed 4-18-96; 3:09 pm]
BILLING CODE 3510-22-F