[Federal Register Volume 61, Number 123 (Tuesday, June 25, 1996)]
[Proposed Rules]
[Pages 32767-32769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16078]



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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 676

[Docket No. 960612171-6171-01; I.D. 060496A]
RIN 0648-AI57


Limited Access Management of Federal Fisheries In and Off of 
Alaska; Quota Shares and Individual Fishing Quota on Smaller Vessels

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 Amendment 42 to the 
Fishery Management Plan (FMP) for the Bering Sea/Aleutian Islands 
Groundfish, Amendment 42 to the FMP for the Gulf of Alaska Groundfish 
Fishery, and a regulatory amendment to the Individual Fishing Quota 
(IFQ) Program for fixed gear Pacific halibut and sablefish fisheries in 
and off of Alaska. The proposed rule would allow quota shares (QS) and 
IFQ assigned to vessels in larger size categories to be used on smaller 
vessels. The North Pacific Fishery Management Council (Council) 
recommended this action to increase the flexibility of QS use and 
transfer while maintaining the management goals of the IFQ Program and 
to provide small boat fishermen with more opportunities to improve the 
profitability of their operations.

DATES: Comments on the proposed rule and supporting documents must be 
received by August 5, 1996.

ADDRESSES: Send comments to Ronald J. Berg, Chief, Fisheries Management 
Division, Attn: Lori Gravel, Alaska Region, National Marine Fisheries 
Service, P.O. Box 21668, Juneau, AK 99802.

    Copies of the proposed Amendments, and the Environmental 
Assessment/Regulatory Impact Review/Initial Regulatory Flexibility 
Analysis (EA/RIR/IRFA) for this action may be obtained from the North 
Pacific Fishery Management Council, Suite 306, 605 West 4th Avenue, 
Anchorage, AK 99501-2252.

FOR FURTHER INFORMATION CONTACT: James Hale, 907-586-7228.

SUPPLEMENTARY INFORMATION:
Background
    The Bering Sea and Aleutian Islands (BSAI) and Gulf of Alaska (GOA) 
groundfish FMPs and their implementing regulations govern the sablefish 
fisheries in Federal waters off Alaska. The FMPs were prepared by the 
Council under the authority of the Magnuson Fishery Conservation and 
Management Act (Magnuson Act). The Northern Pacific Halibut Act of 1982 
(Halibut Act) authorizes the Council to develop and NMFS to implement 
regulations to allocate halibut fishing privileges among U.S. 
fishermen.
    Under these authorities, the Council developed the IFQ Program, a 
limited access system to manage the fixed gear Pacific halibut and 
sablefish fisheries. NMFS approved the IFQ Program in November 1993, 
and fully implemented it beginning in March 1995. The Magnuson Act and 
the Halibut Act authorize amendments to the IFQ Program as necessary to 
conserve and manage these fisheries. The proposed amendments to the 
FMPs and the IFQ Program would increase flexibility of QS use--a change 
that is analyzed along with the status quo alternative in the draft EA/
RIR/IRFA prepared by the Council in February 1996.
Increased Flexibility of QS Use
    The IFQ Program assigns QS to vessel categories specified by length 
overall (LOA) and authorization to process IFQ species (freezer 
vessels) or not (catcher vessels): Category A--freezer vessels of any 
length; Category B--catcher vessels greater than 60 ft (18.3 m) LOA; 
Category C--for sablefish, catcher vessels less than or equal to 60 ft 
(18.3 m) LOA, and for halibut, catcher vessels less than or equal to 60 
ft (18.3 m) but greater than 35 ft (10.7 m) LOA; or Category D--for 
halibut, catcher vessels less than or equal to 35 ft (10.7 m) LOA. 
Current regulations at Sec. 676.22(a) require that IFQ be fished only 
on vessels in the category to which the pertinent QS have been 
assigned. An exception to this rule allows category B, C, or D IFQ to 
be fished on a category A freezer vessel provided its LOA is consistent 
with the vessel category of the IFQ being fished and it neither 
processes any species of fish nor fishes category A IFQ concurrently 
with the use of category B, C, or D IFQ (Sec. 676.22(i)(3)). NMFS has 
published a proposed rule that would amend the regulations to allow IFQ 
fishermen to process groundfish on board their vessels under certain 
circumstances (61 FR 14547, April 2, 1996).
    The Council prohibited QS transfer across vessel categories to 
preserve the

[[Page 32768]]

social and cultural character of the small boat fisheries prior to 
limited access. Public discussions leading up to IFQ Program 
implementation elicited substantial concern that harvesting privileges 
might ultimately transfer to owners of large vessels and disenfranchise 
owners of small vessels. The Council responded to these concerns in 
part by establishing vessel categories and prohibiting transfer and use 
of QS and IFQ across those categories. Thus, these transfer 
restrictions were intended to prevent consolidation of harvesting 
privileges among owners of large vessels.
    Concern over the potential for excessive consolidation also led to 
the Modified Block Program implemented under Amendments 31 and 35 to 
the BSAI and GOA FMPs respectively and IFQ Program amendments published 
at 60 FR 51135 (October 7, 1994). The Modified Block Program requires 
an initial allocation of QS that represents less than 20,000 lb (9.1 
mt) of IFQ in the year prior to the implementation year (1994) to be 
issued as an indivisible block that can be transferred in its entirety 
only.
    During the first year of fishing under the IFQ Program in 1995, IFQ 
fishermen and their representatives reported to the Council that the 
prohibition against using or transferring QS across vessel categories 
limited their ability to improve the profitability of their operations. 
Many fishermen reported that they had received QS that represented far 
fewer pounds than their recent catch history prior to the IFQ program. 
Small boat fishermen reported the scarcity of medium- and large-size QS 
blocks (5,000 lb (2.3 mt)) available to smaller vessels and 
requested that the Council enable them to purchase shares from QS 
holders in larger vessel size categories. Also, category B vessel 
operators reported difficulties in using or marketing small category B 
blocks and requested the opportunity either to downsize operations or 
to sell smaller QS blocks to owners of smaller vessels.
    This action would address the above concerns by allowing QS 
initially assigned to a larger vessel category to be used on smaller 
vessels, while continuing to prohibit the upgrading of QS or IFQ to 
larger vessel categories. Under the proposed amendments, QS would 
continue to be assigned to vessel categories by existing criteria at 
Sec. 676.20(c)(1)-(9) and would retain original vessel category 
assignments in perpetuity. However, the proposed amendments would allow 
halibut and sablefish QS and IFQ assigned to vessel category B to be 
used on vessels of any size; halibut QS assigned to vessel category C 
likewise could be used on vessels of categories C and D. The proposed 
amendments would continue to prohibit the use of QS and IFQ on larger 
vessel categories than originally assigned.
    In taking final action on this proposal, the Council elected to 
diminish the effect the proposed amendment would have in IFQ regulatory 
areas 2C for halibut and east of 140 deg. W. long. for sablefish. In 
these regulatory areas the proportion of QS assigned to vessel category 
B is significantly smaller than the amount assigned to other vessel 
categories. Excessive consolidation of QS among smaller vessels in this 
region of the GOA would reduce the larger vessel fleet and thus also 
have an undesirable impact on the fisheries' socio-economic character. 
This action proposes that QS assigned to vessel category B in IFQ 
regulatory areas 2C for halibut and east of 140 deg. W. long. for 
sablefish be prohibited from use on vessels less than or equal to 60 ft 
(18.3 m) LOA except in QS blocks equivalent to less than 5,000 lb (2.3 
mt) based on the 1996 Total Allowable Catch (TAC).
    For example, an individual who holds two blocks of QS assigned to 
vessel category B in regulatory area 2C (for halibut) or east of 
140 deg. W. long. (for sablefish)--one block equivalent to 13,000 lb 
(5.9 mt) and the other equivalent to 3000 lb (1.4 mt) (according to the 
1996 TAC)--would be able to transfer the smaller QS block or use its 
resulting IFQ on catcher vessels of any size, since the block is 
equivalent to less than 5,000 lb (2.3 mt). The larger QS block, which 
would result in IFQ of more than 5,000 lb (2.3 mt), would still be 
prohibited from use on any vessel other than one in vessel category B. 
Unblocked QS of any amount assigned to vessel category B in areas 2C 
and east of 140 deg. W. long. would continue to be restricted to 
transfer or use on vessels in category B only.
    This action would provide owners of small boats with opportunities 
to acquire QS initially assigned to larger vessel categories and would 
make smaller category B blocks more marketable. The Council's intent to 
prevent excessive consolidation of QS among owners of larger vessels 
would be maintained, while providing greater economic potential for 
owners/operators of smaller boats in the IFQ fisheries. Conversely, the 
additional provision to lessen the effect of the proposed action in 
regulatory areas 2C for halibut and east of 140 deg. W. long. for 
sablefish would prevent excessive consolidation among owners of smaller 
boats in areas where category B QS are relatively few.

Classification

    Section 304(a)(1)(D) of the Magnuson Act requires NMFS to publish 
regulations proposed by a Council within 15 days of receipt of the FMP 
amendments and regulations. At this time, NMFS has not determined that 
the FMP amendments these regulations would implement are consistent 
with the national standards, other provisions of the Magnuson Act, and 
other applicable laws. NMFS, in making final determinations about the 
FMP amendments and in issuing final rules under both the Magnuson and 
Halibut Acts, will take into account the data, views, and comments 
received during the comment period.
    The Council prepared an initial regulatory flexibility analysis as 
part of the regulatory impact review, which describes the impact this 
proposed rule would have on small entities, if adopted. The amendments 
could have a significant positive impact on small vessel owners. They 
open new opportunities for owners of smaller vessels to improve the 
profitability of their operations by increasing the quota share 
holdings available for trade by 309 percent and the IFQ pounds 
available for trade by 2,547 percent. A copy of the analysis is 
available from the Council (see ADDRESSES).
    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.

    Dated: June 19, 1996.
Gary Matlock,
Program Management Officer, National Marine Fisheries Service.
    For the reasons set forth 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. In Sec. 676.20, paragraph (a)(2) is revised to read as follows:


Sec. 676.20  Individual allocations.

* * * * *
    (a) * * *
    (2) Vessel categories. QS and IFQ assigned to vessel categories 
include:
    (i) Category A--QS and IFQ, which authorizes an IFQ cardholder to 
harvest and process IFQ species on a freezer vessel of any length;

[[Page 32769]]

    (ii) Category B--QS and IFQ, which authorizes and IFQ cardholder to 
harvest IFQ species on a catcher vessel of any length;
    (iii) Category C--QS and IFQ, which authorizes an IFQ cardholder to 
harvest IFQ species on a catcher vessel less than or equal to 60 ft 
(18.3 m) in length overall; and
    (iv) Category D--QS and IFQ, which authorizes an IFQ cardholder to 
harvest IFQ halibut on a catcher vessel less than or equal to 35 ft 
(10.7 m) in length overall.
* * * * *
    3. In Sec. 676.22, paragraph (a) is revised to read as follows:


Sec. 676.22  Limitations on use of QS and IFQ

    (a) The IFQ specified for one IFQ regulatory area must not be used 
in a different IFQ regulatory area. Except as provided in paragraph 
(i)(3) of this section or in Sec. 676.21(h)(1), the IFQ assigned to one 
vessel category as provided in Sec. 676.20(a) must not be used to 
harvest IFQ species on a vessel of a different vessel category. 
Notwithstanding Sec. 676.20(a)(2)(ii), IFQ assigned to vessel category 
B must not be used on any vessel less than or equal to 60 ft (18.3 m) 
in length overall to harvest IFQ halibut in IFQ regulatory area 2C or 
IFQ sablefish in the IFQ regulatory area east of 140 deg. W. long. 
unless such IFQ derives from blocked QS units that result in IFQ of 
less than 5,000 lb (2.3 mt), based on the 1996 TAC for fixed gear 
specified for the IFQ halibut fishery and the IFQ sablefish fishery in 
each of these two regulatory areas.
* * * * *
[FR Doc. 96-16078 Filed 6-20-96; 9:26 am]
BILLING CODE 3510-22-F