[Federal Register Volume 61, Number 125 (Thursday, June 27, 1996)]
[Rules and Regulations]
[Pages 33382-33386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16379]
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DEPARTMENT OF COMMERCE
50 CFR Part 679
[Docket No. 960321089-6175-02; I.D. 031396B]
RIN 0648-AG41
Fisheries of the Exclusive Economic Zone off Alaska; Allow
Processing of Non-Individual Fishing Quota Species
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
[[Page 33383]]
ACTION: Final rule.
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SUMMARY: NMFS issues a final rule that implements Amendment 33 to the
Fishery Management Plan for the Groundfish Fishery of the Bering Sea
and Aleutian Islands Area and Amendment 37 to the Fishery Management
Plan for Groundfish of the Gulf of Alaska (GOA). These amendments and
this final implementing rule are necessary to allow fuller use of the
fishery resources in and off of Alaska. This action is intended to
allow persons authorized to harvest individual fishing quota (IFQ)
sablefish to process species other than IFQ halibut and IFQ sablefish.
EFFECTIVE DATE: July 26, 1996.
ADDRESSES: Copies of the Environmental Assessment/Regulatory Impact
Review (EA/RIR) for this action may be obtained from the Fisheries
Management Division, Alaska Region, NMFS, 709 W. 9th Street, Room 453,
Juneau, AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attention: Lori
J. Gravel.
FOR FURTHER INFORMATION CONTACT: John Lepore, 907-586-7228.
SUPPLEMENTARY INFORMATION: As part of the President's Regulatory
Reform Initiative, NMFS issued a final rule (61 FR 31228, June 19,
1996) removing six parts in title 50 of the CFR (50 CFR parts 671,
672, 673, 675, 676, and 677) and consolidated the regulations
contained therein into one new part (50 CFR part 679). This
consolidated regulation provides the public with a single reference
source for the Federal fisheries regulations specific to the EEZ
off Alaska. The restructuring of the six parts results in one set
of regulations that is more concise, clearer, and easier to use
than the six separate parts. NMFS also identified duplicative and
obsolete provisions and removed those measures from the six parts.
No substantive changes were made to the regulations by the
consolidation or removal of duplicative and obsolete provisions.
The consolidated final rule will become effective July 1, 1996.
Amendments 33 and 37 allow persons authorized to harvest IFQ
sablefish, based on an annual allocation of IFQ assigned to vessel
categories B or C, to process species other than IFQ halibut and IFQ
sablefish. Additional information on this action may be found in the
preamble to the proposed rule.
Several changes to the regulations implementing the IFQ program are
necessary to implement Amendments 33 and 37. First, the definitions of
``freezer vessel'' and ``catcher vessel'' (as ``catcher vessel''
relates to the IFQ program) are removed.
Second, references to the removed definitions are replaced with
alternative language. Finally, a provision is added to allow the
processing of fish other than IFQ halibut and IFQ sablefish on board
vessels on which persons are harvesting IFQ sablefish based on an
annual allocation of IFQ assigned to vessel categories B and C. A
detailed explanation of these 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. 679.2 (previously found in part
676, subparts B and C) were unnecessary and proposed their removal.
NMFS proposed to replace these definitions with the definition of
``processing,'' which can be found at Sec. 679.2 (previously found at
Secs. 672.2 and 675.2).
The definition of processing is important to the revised
specifications of vessel categories at Sec. 679.40(a)(5)(ii)
(previously found in Sec. 676.20(a)(2)). Vessel category A, which
currently is freezer vessels of any length, is changed to be vessels of
any length authorized to process IFQ species. Quota share (QS) and the
resulting IFQ is designated by IFQ species; therefore, a person can
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. 679.40(a)(5) (previously found in Sec. 676.20(c)). The other
vessel categories found at Sec. 679.40(a)(5)(ii) (previously found in
Sec. 676.20(a)(2)) (i.e., vessel categories B, C, and D) also do 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. 679.40(a)(5)(ii) (previously found at
Sec. 676.20(a)(2)) no longer refers to freezer vessels or catcher
vessels, but rather describes 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, all other references in part 679, subpart D (previously
found in part 676 subparts B and C), to freezer vessels or catcher
vessels are removed.
For example, Sec. 679.7(f)(13) (previously found in Sec. 676.16(o))
prohibits persons from having processed and unprocessed IFQ species on
board a vessel during the same trip. This replaces the current
prohibition on operating as a catcher vessel and a freezer vessel
during the same trip. This change, along with the addition of
Sec. 679.7(f)(16), allows a person authorized to harvest IFQ sablefish,
based on an annual allocation of IFQ assigned to vessel categories B or
C, to process fish other than IFQ halibut or IFQ sablefish, a behavior
consistent with the intent of the North Pacific Fishery Management
Council (Council) in proposing Amendments 33 and 37. Other sections
from which references to freezer vessels and catcher vessels are
removed include: Sec. 679.41(g)(1) through (4) and (h) (previously
found in Sec. 676.21(f)(1) through (4), and (g)); and Sec. 679.42(i),
(i)(1), and (i)(2), (j), (j)(1), and (j)(4) (previously found in
Sec. 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. 679.42(k), is added to allow processing of
fish other than IFQ halibut or IFQ sablefish on board the harvesting
vessel by persons authorized to harvest IFQ sablefish based on an
annual allocation of IFQ assigned to vessel categories B or C. Without
this 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 authorized to harvest IFQ
sablefish based on an annual allocation of IFQ assigned to vessel
categories B and C. Prohibiting the processing of fish other than IFQ
halibut or IFQ sablefish on category B or C vessels 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 allowed a typical sablefish longline trip to exceed
the time period in which fish other than IFQ halibut or IFQ sablefish
maintain sufficient quality to market as fresh fish. This often
resulted 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 authorized to
harvest IFQ sablefish, based on an annual allocation of IFQ 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. Amendments
33 and 37 will eliminate the lost revenue of
[[Page 33384]]
discarding, or landing poor quality, fish other than IFQ halibut and
IFQ sablefish due to the repealed prohibition on processing fish other
than IFQ halibut and IFQ sablefish.
Section Sec. 679.42(i)(2) (previously found in Sec. 676.22(i)(3))
was unnecessary with the addition of Sec. 679.42(k) and the removal of
the definitions of ``freezer vessel'' and ``catcher vessel'' (as the
term ``catcher vessel'' applies to the IFQ program). Furthermore, some
of the provisions in Sec. 679.42(i)(2) (previously found 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
assigned to vessel categories B or C if ``frozen or otherwise processed
fish products'' were on the vessel, regardless of whether the frozen or
otherwise processed fish were IFQ halibut or IFQ sablefish, or fish
other than those species. The intent of this action is to allow persons
to harvest IFQ sablefish with IFQ 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 does not extend to persons authorized to harvest IFQ halibut
based on an annual allocation of IFQ 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.
Amendments 33 and 37 are not intended 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 authorized to
harvest IFQ halibut based on an annual allocation of IFQ assigned to
vessel categories B, C, or D is consistent with one of the objectives
of the IFQ program (i.e., to maintain a diverse fleet where all
segments continue to exist along with the social structures associated
with those segments). The prohibition on processing on board the
harvesting vessel by persons harvesting IFQ species with IFQ 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 assigned to vessel categories B, C, or D while
processed fish are 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, which 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
that would not be able to compete with the large, industrial-type
vessels that process their catch for available IFQ would have
detrimental socio-economic impacts on coastal communities. This was
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.
Response to Comments
A comment was received from the Office of the Chief Counsel for
Advocacy, Small Business Administration, regarding the analysis for the
Regulatory Flexibility Act (RFA) that is contained in the EA/RIR. The
comment concluded that the agency's language in section 4.1, Economic
Impact on Small Entities, was ambiguous because the language stated
that the action would positively affect sablefish catcher vessel QS
holders. The Office of the Chief Counsel concluded that this ambiguity
made it difficult for a reader of the analysis to determine whether the
action would have a significant impact on a substantial number of small
entities.
NMFS's determination was that this action will not have a
significant impact on a substantial number of small entities. Actions
can have an adverse economic impact, a positive economic impact, or a
neutral economic impact on small entities. In this case, the action
will have a positive impact. However, the positive economic effects of
this action mentioned in section 4.1 will not have a significant impact
on a substantial number of small entities.
Also, a comment was received from the U.S. Coast Guard stating that
all enforcement and safety concerns with these amendments were
addressed by the proposed rule.
Changes to the Proposed Rule
The proposed rule to implement Amendments 33 and 37 was published
in the Federal Register on April 2, 1996 (61 FR 14547) as a proposed
amendment to 50 CFR part 676 (Limited Access Management of Federal
Fisheries In and Off of Alaska). Effective July 1, part 676 will be
integrated with part 679. The final rule implementing Amendments 33 and
37 will become effective July 26, 1996; and consequently after 50 CFR
part 676 has been integrated with 50 CFR part 679. Accordingly, the
final rule to implement Amendments 33 and 37 has been revised to make
the appropriate amendments to 50 CFR part 679 instead of 50 CFR part
676.
A new paragraph (f)(16) was added to Sec. 679.7 to specifically
prohibit the processing of fish on board a vessel using IFQ assigned to
vessel categories B, C, or D, except as provided in new Sec. 679.42(k).
New section 679.42(k) authorizes limited processing of species other
than IFQ sablefish and IFQ halibut. The addition of paragraph (f)(16)
will eliminate any confusion caused by removing Sec. 676.42(i)(2)
(previously found in Sec. 676.22(i)(3)).
A cite to Sec. 676.22(i)(3) has been eliminated from proposed
Sec. 676.22(a) (now Sec. 679.42(a)) because Sec. 676.22(i)(3) itself is
eliminated by the new rule.
Classification
An EA/RIR was prepared for this 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 rule does not have a significant
economic impact on a substantial number of small entities. Copies of
the EA/RIR can be obtained from NMFS (see ADDRESSES).
This rule has been determined to be not significant for purposes of
E.O. 12866.
List of Subjects in 50 CFR Part 679
Fisheries, Reporting and recordkeeping requirements.
Dated: June 20, 1996.
Henry R. Beasley,
Acting Assistant Administrator for Fisheries, National Marine Fisheries
Service.
For the reasons set out in the preamble, 50 CFR part 679 is amended
as follows:
PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA
1. The authority citation for 50 CFR part 679 continues to read as
follows:
Authority: 16 U.S.C. 773 et seq. and 1801 et seq.
2. In Sec. 679.2, the definition of ``Freezer vessel'' is removed,
and paragraph (3) under the definition of
[[Page 33385]]
``Catcher vessel'' is removed and paragraph (3) is reserved.
3. In Sec. 679.7, paragraph (f)(13) is revised and a new paragraph
(f)(16) is added to read as follows:
Sec. 679.7 General prohibitions.
* * * * *
(13) Possess processed and unprocessed IFQ species on board a
vessel during the same trip except when fishing exclusively with IFQ
derived from vessel category A QS;
* * * * *
(16) Process fish on board a vessel on which a person aboard has
unused IFQ derived from QS issued to vessel categories B, C, or D,
except as provided in Sec. 679.42(k) of this part;
* * * * *
4. In Sec. 679.40, paragraph (a)(5)(ii) is revised to read as
follows:
Sec. 679.40 Sablefish and halibut QS.
* * * * *
(a) * * *
(5) * * *
(ii) Vessel categories. Quota share assigned to vessel categories
include:
(A) Category A quota share, which authorizes an IFQ cardholder to
catch and process IFQ species on a vessel of any length.
(B) 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.
(C) 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
(D) 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. 679.41, paragraphs (g) and (h) are revised to read as
follows:
Sec. 679.41 Transfer of QS and IFQ.
* * * * *
(g) Transfer restrictions, catcher vessel QS. (1) Except as
provided in paragraph (f) or paragraph (g)(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 (g)(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 will
be governed by the use provisions of Sec. 679.42(i); the use provisions
pertaining to corporations at Sec. 679.42(j) shall not apply.
(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 (h) 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.
(h) 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 shall 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
will expire on December 31 of the calendar year for which they are
approved.
* * * * *
6. In Sec. 679.42, paragraphs (a), (i), and (j) introductory text,
(j)(1), and (j)(4), are revised and paragraph (k) is added to read as
follows:
Sec. 679.42 Limitations on use of QS and IFQ.
(a) IFQ regulatory area. The QS or IFQ specified for one IFQ
regulatory area and vessel category must not be used in a different IFQ
regulatory area or vessel category except as provided in
Sec. 679.41(i)(1).
* * * * *
(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 on board 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. 676.41(c) of this part and be used pursuant to paragraphs (c) and
(i) of this section.
(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
[[Page 33386]]
partnership that changes, as defined in this paragraph, must be
transferred to an individual, as prescribed in Sec. 679.41 of this
part, 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. 96-16379 Filed 6-26-96; 8:45 am]
BILLING CODE 3510-22-W