[Federal Register Volume 61, Number 164 (Thursday, August 22, 1996)]
[Rules and Regulations]
[Pages 43312-43315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21376]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 960612171-6227-02; I.D. 060496A]
RIN 0648-AI57


Fisheries of the Exclusive Economic Zone off Alaska; Allowing 
Quota Shares and Individual Fishing Quota To Be Used on Smaller Vessels

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

ACTION: Final rule.

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SUMMARY: NMFS issues a final rule to implement Amendment 42 to the 
Fishery Management Plan (FMP) for Groundfish of the Gulf of Alaska and 
Amendment 42 to the Fishery Management Plan for the Groundfish Fishery 
of the Bering Sea and Aleutian Islands Area, and a regulatory amendment 
to the Individual Fishing Quota (IFQ) Program for fixed gear Pacific 
halibut and sablefish fisheries in and off Alaska. These FMP and 
regulatory amendments will allow quota shares (QS) and their associated 
IFQ assigned to vessels in larger size categories to be used on smaller 
vessels. This action is necessary to increase the flexibility of QS use 
and transfer while maintaining the management goals of the IFQ Program. 
It is intended to relieve certain restrictions in the IFQ Program.

EFFECTIVE DATE: August 16, 1996.


[[Page 43313]]


ADDRESSES: Copies of the final rule and the Environmental Assessment/
Regulatory Impact Review/Final Regulatory Flexibility Analysis (EA/RIR/
FRFA) for this action may be obtained from Fisheries Management 
Division, ATTN: Lori Gravel, Alaska Region, National Marine Fisheries 
Service, P.O. Box 21668, Juneau, AK 99802.

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

SUPPLEMENTARY INFORMATION:

Background

    The Bering Sea and Aleutian Islands and Gulf of Alaska groundfish 
FMPs and their implementing regulations govern the sablefish fisheries 
in Federal waters off Alaska. The FMPs were developed by the North 
Pacific Fishery Management Council (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. These amendments allow QS and IFQ 
assigned to vessels in larger size categories to be used on smaller 
vessels. A description of these amendments follows.
    The IFQ Program assigns QS and IFQ to vessel categories specified 
by length overall (LOA) and authorization to process IFQ species or not 
as follows: Category A--which authorizes an IFQ cardholder to catch and 
process IFQ species on a vessel of any length; Category B--which 
authorizes an IFQ cardholder to catch IFQ species on a vessel greater 
than 60 ft (18.3 m) LOA; Category C--which authorizes an IFQ cardholder 
to catch sablefish on a vessel less than or equal to 60 ft (18.3 m) 
LOA, and catch halibut on a vessel less than or equal to 60 ft (18.3 m) 
but greater than 35 ft (10.7 m) LOA; or Category D--which authorizes an 
IFQ cardholder to catch halibut on a vessel less than or equal to 35 ft 
(10.7 m) LOA. Current regulations at Sec. 679.42(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 vessel provided its LOA is consistent with the 
vessel category of the IFQ being fished and it neither processes any 
species of fish nor concurrently fishes Category A IFQ with the use of 
Category B, C, or D IFQ (Sec. 679.42(i)(2)(i)). The Council prohibited 
QS transfer across vessel categories to preserve the social and 
cultural character of the small boat fisheries prior to limited access.
    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 greater than or equal to 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.
    These amendments 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 use of QS or its associated 
IFQ assigned to smaller vessel categories on larger vessels. QS will 
continue to be assigned to vessel categories by existing criteria at 
Sec. 679.40(a)(5) (i) through (vi) and will retain original vessel 
category assignments. However, halibut and sablefish QS and their 
associated IFQ assigned to vessel Category B can be used on vessels of 
any size; halibut QS assigned to vessel Category C likewise can be used 
on vessels of categories C and D. The regulations continue to prohibit 
the use of QS and IFQ on vessels larger than the maximum LOA of the 
category to which the QS was originally assigned.
    This rule does not apply to halibut in IFQ regulatory areas 2C or 
to sablefish east of 140 deg. W. long. Halibut QS assigned to vessel 
Category B in IFQ regulatory areas 2C and sablefish QS east of 140 deg. 
W. long. are 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, because 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.
    Further information on the amendments may be found in the preamble 
to the proposed rule (61 FR 32767, June 25, 1996). Written comments on 
the proposed rule and associated amendments were invited through August 
5, 1996, and August 6, 1996, respectively.

Changes From the Proposed Rule to the Final Rule

    No substantive changes have been made in the final rule from the 
proposed rule. Between publication of the proposed and final rules for 
this action, the regulations governing fisheries in the Exclusive 
Economic Zone off Alaska have been consolidated into one new CFR part 
(50 CFR part 679) as part of the President's Regulatory Reform 
Initiative (see 61 FR 31228, June 19, 1996). This final rule renumbers 
and otherwise adjusts the changes contained herein to be consistent 
with the new disposition of regulations in 50 CFR part 679.

Comments on the Proposed Rule

    Sixteen letters of comment were received by NMFS regarding 
Amendments 42/42. Fourteen letters provided comments in support of the 
amendments. Of these, nine opposed the exception for halibut in 
regulatory areas 2C and for sablefish east of 140 deg. W. long. Seven 
letters requested that NMFS expedite the regulatory review process, 
promoting the opportunity for fishermen with larger QS to take 
advantage of this action during the summer weather. One letter provided 
no comment. One letter indicated that these amendments would increase 
costs for consumers as a result of smaller, rather than larger, vessels 
delivering QS. These comments, which are summarized and responded to 
below,

[[Page 43314]]

were considered in the formulation of this final rule.
    Comment 1: The amendments should improve the profitability of 
operations for fishermen in the IFQ Program.
    Response: NMFS concurs in this comment. These amendments will 
provide small boat owners opportunity to acquire QS initially assigned 
to holders with larger vessels, and the amendments will make smaller 
Category B blocks more marketable.
    Comment 2: The exception for the regulatory areas 2C for halibut 
and east of 140 deg. W. long. is unnecessary.
    Response: The exception is necessary. The imbalance in distribution 
of QS across vessel categories in these regulatory areas, with a 
predominant amount of shares assigned for use on smaller vessels, 
requires the exception to prevent excessive consolidation of QS among 
owners of smaller vessels. This action nevertheless provides some 
additional flexibility by allowing QS blocks equivalent to less than 
5,000 lb (2.3 mt) to be used on smaller vessels.
    Comment 3: These amendments will increase costs for consumers, 
because more small vessels will deliver IFQ catch. The concept of scale 
economies, in which a processing plant can spread its fixed costs over 
more quantity permitting it to sell at better prices, is lost. These 
amendments, therefore, will not be in the best interest of the local 
economy, the region, or the nation.
    Response: Although the commenter may be theoretically correct with 
respect to any one processor, NMFS does not have information to compare 
price information with fixed costs in the aggregate for all processors. 
On balance, these amendments will benefit the Nation. National Standard 
1 of the Magnuson Act requires measures, in part, to achieve the 
optimum yield (OY) from each fishery for the U.S. fishing industry. The 
determination of OY is a decisional mechanism for balancing the various 
interests that comprise the national welfare. Among these interests are 
social factors, including those relevant to small boat fisheries on 
which local Alaskan communities often depend. NMFS finds that these 
amendments promote these social factors, resulting in a positive 
benefit to the Nation.
    Comment 4: The majority of letters implored NMFS to expedite the 
implementation of the amendments.
    Response: NMFS notes the comment.

Classification

    The Director, Alaska Region, NMFS, determined that Amendment 42 to 
the Fishery Management Plan for Groundfish of the Gulf of Alaska and 
Amendment 42 to the Fishery Management Plan for the Groundfish Fishery 
of the Bering Sea and Aleutian Islands Area are necessary for the 
conservation and management of the groundfish and halibut fisheries off 
Alaska and that they are consistent with the Magnuson Act and other 
applicable laws.
    The Assistant Administrator for Fisheries, NOAA finds that this 
final rule relieves a restriction, because fishermen with vessels in 
smaller size categories will be able to harvest, in 1996, QS and its 
associated IFQ assigned to larger vessels prior to the advent of poorer 
weather, thereby harvesting more of the available quota during safer 
fishing conditions. A delayed effectiveness under 5 U.S.C. section 
553(d)(1), therefore, is not required.
    The Council prepared an Initial Regulatory Flexibility Analysis 
(IRFA) as part of the Regulatory Impact Review (RIR); NMFS prepared an 
FRFA. These documents provide a statement of the need for and 
objectives of this rule as stated in the preamble. A maximum of 8,614 
small entities, including 6,640 halibut quota share holders and 1,974 
sablefish quota share holders, may be affected by this rule. This rule 
does not include any reporting or recordkeeping requirements. It is 
designed to relieve certain restrictions in the IFQ program and 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. The rule is expected to have a 
positive economic impact on small entities consistent with the 
objectives of the ITQ program. Alternative 1 (the status quo) was 
rejected in favor of Alternative 3 (the preferred alternative) because 
Alternative 3 increases the flexibility of the IFQ program and provides 
additional economic opportunities to small entities. Alternative 2 (the 
alternative that would not include the exception for IFQ halibut in 
regulatory area 2C and for IFQ sablefish east of 140 deg. W. long.) was 
rejected in favor of Alternative 3 because the preferred alternative 
would avoid excessive concentration of quota share among owners of 
smaller vessels, consistent with the objectives of the ITQ program; 
nonetheless, Alternative 3 does provide some additional flexibility by 
allowing quota share blocks of certain amounts to be used on smaller 
vessels. Comments were received on the proposed rule, but none 
discussed the IRFA or RIR specifically; those comments and responses to 
them are summarized in the preamble. A copy of the FRFA is available 
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, Recordkeeping and Reporting.

    Dated: August 16, 1996.
Gary Matlock,
Program Management Officer, National Marine Fisheries Service.

    For the reasons set forth 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. 679.40, paragraph (a)(5)(ii) is revised to read as 
follows:


Sec. 679.40  Sablefish and halibut QS.

* * * * *
    (a) * * *
    (5) * * *
    (ii) Vessel categories. QS and its associated IFQ assigned to 
vessel categories include:
    (A) Category A QS and associated IFQ, which authorizes an IFQ 
cardholder to harvest and process IFQ species on a vessel of any 
length;
    (B) Category B QS and associated IFQ, which authorizes an IFQ 
cardholder to harvest IFQ species on a vessel of any length;
    (C) Category C QS and associated IFQ, which authorizes an IFQ 
cardholder to harvest IFQ species on a vessel less than or equal to 60 
ft (18.3 m) LOA:
    (D) Category D QS and associated IFQ, which authorizes an IFQ 
cardholder to harvest IFQ halibut on a vessel less than or equal to 35 
ft (10.7 m) LOA;
* * * * *
    3. In Sec. 679.42, paragraph (a) is revised to read as follows:


Sec. 679.42  Limitations on use of QS and IFQ.

    (a) IFQ regulatory area and vessel category. The QS or IFQ 
specified for one IFQ regulatory area must not be used in a different 
IFQ regulatory area. Except as provided in paragraph (k) of this 
section or in Sec. 679.41(i)(1) of this part, the IFQ assigned to one 
vessel category must not be used to harvest IFQ species on a vessel of 
a different vessel category. Notwithstanding Sec. 679.40(a)(5)(ii) of 
this part, IFQ

[[Page 43315]]

assigned to vessel Category B must not be used on any vessel less than 
or equal to 60 ft (18.3 m) LOA 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. 96-21376 Filed 8-16-96; 4:22 pm]
BILLING CODE 3510-22-P