[Federal Register Volume 61, Number 189 (Friday, September 27, 1996)]
[Proposed Rules]
[Pages 50797-50799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24786]


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DEPARTMENT OF COMMERCE
50 CFR Part 679

[Docket No. 960918264-6264-01; I.D. 091296A]
RIN 0648-AI61


Fisheries of the Exclusive Economic Zone Off Alaska; Individual 
Fishing Quota Program; Sweep-up Adjustments

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 43 
to the Fishery Management Plan (FMP) for the Groundfish Fishery of the 
Bering Sea and Aleutian Islands Area (BSAI) and Amendment 43 to the 
Fishery Management Plan for Groundfish of the Gulf of Alaska (GOA) and 
a regulatory amendment to the halibut individual fishing quota (IFQ) 
regulations. This action is necessary to increase the consolidation 
(``sweep-up'') levels for small quota share (QS) blocks for Pacific 
halibut and sablefish managed under the IFQ program. This action is 
intended to maintain consistency with the objectives of the IFQ program 
(i.e., prevent excessive consolidation of QS, maintain diversity of the 
fishing fleet, and allow new entrants into the fishery), while 
increasing the program's flexibility by allowing a moderately greater 
amount of QS to be ``swept-up'' into larger amounts that can be fished 
more economically.

DATES: Comments must be received by November 12, 1996.

ADDRESSES: Comments must be sent to Ronald J. Berg, Chief, Fisheries 
Management Division, Alaska Region, NMFS, 709 West 9th Street, Room 
453, Juneau, AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attn: 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 Information

    The U.S. groundfish fisheries of the GOA and the BSAI in the 
exclusive economic zone are managed by NMFS pursuant to the FMPs for 
groundfish in the respective management areas. The FMPs were prepared 
by the North Pacific Fishery Management Council (Council) pursuant to 
the Magnuson Fishery Conservation and Management Act (Magnuson Act) at 
16 U.S.C. 1801 et seq., and are implemented by regulations for the U.S. 
fisheries at 50 CFR part 679. The Northern Pacific Halibut Act of 1982 
(Halibut Act) at 16 U.S.C. 773 et seq., 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 management system for the fixed gear Pacific halibut and 
sablefish fisheries. NMFS approved the IFQ program in November 1993, 
and fully implemented the program beginning in March 1995. The Magnuson 
Act and the Halibut Act authorize the Council to recommend to NMFS 
changes to the IFQ program as necessary to conserve and manage the 
fixed gear Pacific halibut and sablefish fisheries.

Rationale for Amendments 43/43

    Before NMFS implemented the IFQ program, the Council recommended 
that all initially issued QS that resulted in less than 20,000 lb (9 
metric tons (mt)) of IFQ would be ``blocked,'' that is, issued as an 
inseparable unit. Further information on Amendments 31/35 (Block 
Amendments) can be found in the preambles to the proposed rule (59 FR 
33272, June 28, 1994), and the final rule (59 FR 51135, October 7, 
1994). The final rule implementing these amendments was effective prior 
to the beginning of the first IFQ season in 1995.
    The Block Amendments created a variety of block sizes that were 
available for transfer. One of the primary purposes of the Block 
Amendments was to create small blocks of QS that could be purchased at 
a relatively low cost by crewmembers and new entrants to the IFQ 
fisheries. As the experience of these fishermen increased and the size 
of their fishing operations grew, larger amounts of QS were needed to 
accommodate this growth. One method included in the Block Amendments to 
accommodate this growth was the ``sweep-up'' provision, which allows 
very small blocks of QS to be permanently consolidated. The maximum 
sweep-up level was set at 1,000 lb (0.45 mt) for

[[Page 50798]]

Pacific halibut and 3,000 lb (1.4 mt) for sablefish, based on the 1994 
total allowable catch (TAC).
    After the completion of the first IFQ season, the IFQ longline 
industry reported that the established sweep-up levels were lower than 
the harvest amount of a worthwhile fishing trip. Therefore, the IFQ 
longline industry requested a moderate increase in the sweep-up levels 
to allow greater amounts of QS to be swept-up into larger amounts that 
can be fished more economically. The Council determined that a moderate 
increase in the sweep-up levels would likely enhance the opportunity of 
crewmembers and small boat fishermen who seek to increase their QS 
holdings. The Council also determined that allowing persons to 
permanently consolidate slightly larger blocks of QS would not 
circumvent the primary goals of the Block Amendments (i.e., preventing 
excessive consolidation and maintaining the diversity of the IFQ 
longline fleet).

Management Action Pursuant to Amendments 43/43

    Amendments 43/43 would increase the sweep-up levels for small QS 
blocks for Pacific halibut and sablefish from the current 1,000 lb 
(0.45 mt) maximum for Pacific halibut and 3,000 lb (1.4 mt) maximum for 
sablefish to a 3,000 lb (1.4 mt) maximum and a 5,000 lb (2.3 mt) 
maximum, respectively. Two other changes were recommended to accompany 
these increases. First, the base year TAC for determining the pounds 
would be the 1996 TAC, rather than 1994 TAC, which was used for the 
first sweep-up levels. Second, once QS levels are established for the 
appropriate regulatory areas based on the 1996 TAC, those QS levels 
would be fixed and codified. This would eliminate any confusion as to 
the appropriate sweep-up level in pounds, which would fluctuate with 
changes in the annual TAC.
    For example, the original sweep-up level for Pacific halibut was 
set at a 1,000 lb (0.45 mt) maximum based on the 1994 catch limit. This 
equaled 5,146 QS for the IFQ regulatory Area 2C based on the formula 
for calculating a person's annual allocation of IFQ as described in 
Sec. 679.40(c) (i.e., the ratio of a person's QS for an IFQ regulatory 
area to the QS pool multiplied by the catch limit for that area. In 
1995, the first year of fishing under the IFQ program, the halibut 
catch limit for IFQ regulatory Area 2C was 9,000,000 lb (4,082.3 mt). 
By using this catch limit and the 1995 QS/QS pool ratio, the actual 
maximum pounds that could be swept-up in IFQ regulatory Area 2C in 1995 
was 774 lb (0.35 mt). This amount changed to 772 lb (0.35 mt) based on 
the new catch limit and QS/QS pool ratio in 1996. These fluctuations 
were very confusing, especially since the regulations codified the 
maximum levels in pounds.
    Codifying a fixed QS number would eliminate this confusion. The 
number of QS units that could be swept-up would remain the same year 
after year, only the resulting IFQ would fluctuate annually. For 
example, the new sweep-up maximum for IFQ regulatory Area 2C would be 
19,992 QS units based on the 1996 catch limit and the QS/QS pool ratio. 
This number of QS units would be codified as the maximum sweep-up level 
for IFQ regulatory Area 2C. Although the annual IFQ pounds resulting 
from 19,992 QS units in IFQ regulatory Area 2C may vary, the QS unit 
number would remain fixed and readily available in the regulatory text.

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 socio-economic 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 economic analysis in the EA/RIR, the Assistant General Counsel 
for Legislation and Regulation of the Department of Commerce certified 
to the Chief Counsel for Advocacy of the Small Business Administration 
that this rule would not have a significant economic impact on a 
substantial number of small entities; as follows:

    The proposed rule would increase the consolidation (``sweep-
up'') levels for small quota share (QS) blocks for Pacific halibut 
and sablefish managed under the Individual Fishing Quota (IFQ) 
program. These amendments are intended to maintain consistency with 
the objectives of the IFQ program (i.e., prevent excessive 
consolidation of QS, maintain diversity of the fishing fleet, and 
allow new entrants into the fishery) while increasing the program's 
flexibility by allowing moderately greater amounts of QS to be 
swept-up into amounts that can be fished more economically.
    Although most fishing operations affected by these regulations 
are considered small entities, the impacts of these regulations are 
not of the type contemplated by the Regulatory Flexibility Act (RFA) 
as significant. This proposed rule, if approved, would provide 
regulatory relief to small entities by removing inefficient barriers 
to economically beneficial consolidations. For example, allowing 
greater amounts of QS to be swept-up into blocks could affect 
fishing operations by increasing their efficiency; however, this 
efficiency would not economically impact annual gross revenues or 
compliance costs of small entities, either directly or indirectly, 
to the levels considered significant under the RFA. Therefore, the 
analysis contained in the Regulatory Impact Review concluded that 
this action would 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 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 679

    Fisheries, Reporting and recordkeeping requirements.

    Dated: September 23, 1996.
N. Foster,
Deputy Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
    For the reasons set out in the preamble, 50 CFR part 679 is 
proposed to be 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., 1801 et seq.

    2. In Sec. 679.41, paragraph (e)(2) is revised and paragraph (e)(3) 
is added to read as follows:


Sec. 679.41  Transfer of QS and IFQ.

* * * * *
    (e)* * *
    (2) QS blocks for the same IFQ regulatory area and vessel category 
that represent less than 5,000 lb (2.3 mt) of sablefish IFQ, based on 
the 1996 TAC share for fixed gear sablefish in a specific IFQ 
regulatory area and the QS pool for that IFQ regulatory area on January 
31, 1996, may be consolidated into larger QS blocks provided that the 
consolidated blocks do not represent greater than 5,000 lbs (2.3 mt) of 
sablefish IFQ based on the preceding criteria. A consolidated block 
cannot be divided and is considered a single block for purposes of use 
and transferability. The maximum number of QS units that may be 
consolidated into a single QS block in each IFQ regulatory area is as 
follows:
    (i) Southeast Outside district: 33,270 QS.
    (ii) West Yakutat district: 43,390 QS.
    (iii) Central Gulf area: 46,055 QS.

[[Page 50799]]

    (iv) Western Gulf area: 48,410 QS.
    (v) Aleutian Islands subarea: 99,210 QS.
    (vi) Bering Sea subarea: 91,275 QS.
    (3) QS blocks for the same IFQ regulatory area and vessel category 
that represent less than 3,000 lbs (1.4 mt) of halibut IFQ, based on 
the 1996 catch limit for halibut in a specific IFQ regulatory area and 
the QS pool for that IFQ regulatory area on January 31, 1996, may be 
consolidated into larger QS blocks provided that the consolidated 
blocks do not represent greater than 3,000 lbs (1.4 mt) of halibut IFQ 
based on the preceding criteria. A consolidated block cannot be divided 
and is considered a single block for purposes of use and 
transferability. The maximum number of QS units that may be 
consolidated into a single block in each IFQ regulatory area is as 
follows:
    (i) Area 2C: 19,992 QS.
    (ii) Area 3A: 27,912 QS.
    (iii) Area 3B: 44,193 QS.
    (iv) Subarea 4A: 22,947 QS.
    (v) Subarea 4B: 15,087 QS.
    (vi) Subarea 4C: 30,930 QS.
    (vii) Subarea 4D: 26,082 QS.
    (viii) Subarea 4E: 0 QS.
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[FR Doc. 96-24786 Filed 9-24-96; 12:05 pm]
BILLING CODE 3510-22-F