[Federal Register Volume 66, Number 64 (Tuesday, April 3, 2001)]
[Proposed Rules]
[Pages 17668-17673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8048]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 600

[Docket No. 950616159-1055-05; I.D. 022601D]
RIN 0648-ZA16


Northeast Multispecies Fishery; Fishing Capacity Reduction 
Program

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

ACTION: Notice of proposed fishing capacity reduction program and 
request for comments.

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SUMMARY: The Military Construction Appropriations Act for FY 2001 
included an emergency supplemental appropriation for the Northeast 
multispecies fishery of $10.0 million. The emergency appropriation is 
intended to support a voluntary fishing capacity reduction program in 
the Northeast multispecies fishery (FCRP) that permanently removes 
multispecies limited access fishing permits. NMFS is considering a plan 
for distributing funds to permit holders in exchange for their permit 
forfeiture. This document suggests two methods for ranking bids (math 
programming or correlation with fishing capacity). NMFS is requesting 
comments on the most appropriate and cost-effective means to accomplish 
the FCRP's intended goal. NMFS also announces that it will be holding a 
series of meetings to discuss the program and receive comments and 
suggestions on implementation.

[[Page 17669]]


DATES: NMFS will accept comments through May 25, 2001. Public meetings 
will be held between May 8, 2001 and May 17, 2001. For specific dates 
and times, see SUPPLEMENTARY INFORMATION under the heading IV. Public 
Information Meetings.

ADDRESSES: Send written comments on the proposed program to: National 
Marine Fisheries Service, 1 Blackburn Drive, Gloucester, MA 01930, 
Attn: Jack Terrill. The public meetings will be held in Maine, New 
Hampshire, Massachusetts, Rhode Island, New York, and New Jersey. For 
specific locations, see SUPPLEMENTARY INFORMATION under the heading IV. 
Public Information Meetings.

FOR FURTHER INFORMATION CONTACT: Jack Terrill, Fishery Administrator, 
([email protected]) 978-281-9136 or Daniel Morris, Environmental 
Officer ([email protected]) 978-281-9237.

SUPPLEMENTARY INFORMATION:

I. Background

    On July 13, 2000, the President signed the Military Construction 
Appropriations Act for FY 2001 (Pub.L. 106-246), which authorized a $10 
million emergency supplemental appropriation for disaster assistance in 
the Northeast multispecies fishery. The funds are intended to 
compensate industry permittees who choose to participate in a program 
aimed at reducing the permitted fishing capacity in the multispecies 
fishery. Similar past initiatives have proven successful, but have been 
the subject of some criticism, as discussed here. This FCRP aims to 
respond to those criticisms.
    The Northeast multispecies fishery has been declared a commercial 
fishery failure under the authority of section 308(b)(1) of the 
Interjurisdictional Fisheries Act of 1986 (16 U.S.C. 4107(b)(1)). Among 
other things, the declaration was based on incomplete understanding of 
mechanisms for determining multispecies stock levels. Variables that 
determine fluctuations in natural mortality were not fully known. For 
many years, fishing pressure on the multispecies fish stocks increased 
due to significant technological advances, rapid capitalization, and 
unlimited permitting, resulting in a decline in stock abundance to 
record low levels. This led to a determination by NMFS in 1992 that the 
key multispecies stocks had been overfished. In 1994, Amendment 5 to 
the Northeast Multispecies Fishery Management Plan (FMP) implemented a 
5-year stock rebuilding program with the goal of reducing groundfish 
fishing effort by 50 percent. Among the other Amendment 5 management 
actions were limits on the number of vessels in the fishery and on the 
amount of time many vessels in the fleet could spend at sea with a 
schedule for reducing days-at-sea (DAS) over several years. In 1996, 
Amendment 7 to the FMP modified the rebuilding program by imposing a 
more rigorous DAS reduction schedule, by removing most exemptions from 
DAS controls, and by providing a more flexible adjustment process to 
respond to specific resource conditions. Such measures imposed economic 
hardships; several financial assistance programs were implemented to 
mitigate the economic impact that reduced time at sea would have on 
fishermen and fishery-dependent communities.
    Even with these effort reduction measures, the amount of effort 
available to multispecies permittees is still a cause for concern for 
the New England Fishery Management Council (Council) and NMFS. Of 
particular concern is the amount of fishing capacity that is permitted 
and available to the fleet, but is not utilized. According to a recent 
report of the Council's ad-hoc Capacity Committee (October 4, 2000), 
the total DAS allocated to the multispecies permittees (in the limited 
access permit categories) in 1998 was 154,286. Of that total, only 
51,880 DAS were reported as being used.
    There are many reasons that permitted multispecies effort goes 
unused. Vessels may be working in other fisheries. Market conditions, 
(including fish prices, fuel, labor, maintenance, lost opportunity 
costs and other variables) may not make participation in the 
multispecies fisheries sufficiently profitable. Vessels may be in need 
of repair or otherwise inoperable. Adverse weather may prevent or 
discourage use of DAS. Any one of these reasons or a combination may 
result in DAS going unused. Additionally, there are many permits in a 
``Confirmation of Permit History'' (CPH) status that are currently 
unassociated with any vessel, but which could be reactivated if the 
permit owner acquires a new vessel. At present, 85 limited access 
multispecies permits are in the CPH status. If the multispecies fish 
stocks begin to recover or market incentives prompt inactive or less 
than fully active permittees to initiate or to increase their effort in 
the fishery, then the fishery resource rebuilding program may not 
achieve its goals.
    The degree of effort latency varies as broadly as the reasons for 
its existence. According to the Report of the Ad-Hoc Capacity 
Committee, from 1994-1999, 199 vessels with valid multispecies permits 
in limited access categories did not report any fishing activity in the 
Northeast region. During that same period, 166 vessels with valid 
multispecies permits in limited access categories that landed other 
species did not report any landings of the 10 regulated species of 
groundfish. Of the 1,315 vessels that landed one or more pounds of any 
of the 10 regulated species, many did not utilize their full allocation 
of DAS. Reactivation of this latent effort or the shift of effort from 
other fisheries to multispecies fisheries could undermine the 
groundfish resource recovery.
    On September 10, 1999, NMFS published the Council-approved control 
date for the Northeast multispecies and Atlantic sea scallop fisheries 
(64 FR 49139, September 10, 1999), which may be used for establishing 
eligibility criteria for future access to these fisheries. At about the 
same time, the Council established an ad-hoc Capacity Committee to 
examine and provide recommendations to the Council on the various 
capacity issues existing within the multispecies and sea scallop 
fisheries. The Capacity Committee has concluded its year-long 
deliberations and has provided recommendations to the Council to be 
developed further by the Council's Groundfish Committee. The Capacity 
Committee's report discusses measures to consolidate effort in the 
fishery, to defer or allocate effort, or to provide incentives for 
vessels to leave the fisheries. The Report of the Ad-Hoc Capacity 
Committee will be among the many factors the Council will weigh as it 
develops and implements, by the fall of 2002, the next round of 
restructuring of the multispecies fishery through Amendment 13 to the 
FMP. NMFS consulted with the Capacity Committee and Council staff 
regarding the timing of the implementation of the FCRP with respect to 
the Council's Amendment 13. The Military Construction Appropriations 
Act requires ``timely'' disbursal of the funds and implementation of 
the program.

Review of Previous Efforts--Initial, Expanded Buybacks

    Under the provisions of the Emergency Supplemental Appropriations 
Act of 1994, $2 million was made available as part of the Northeast 
Fisheries Assistance Program for a pilot program called the Fishing 
Capacity Reduction Demonstration Program (pilot program). The purpose 
of that pilot program was to test an approach for permanently reducing 
the fishing capacity in the Northeast multispecies fishery. On October 
11, 1995, NOAA announced that 114 vessel

[[Page 17670]]

owners, with vessels worth over $52 million and representing 31 percent 
of the active groundfish capacity, applied to participate in the pilot 
program. Under the pilot program, vessel owners submitted bids, that 
is--the price at which he/she would be willing to forfeit all Federal 
fishing permits and render the vessel unable to fish. The criterion for 
selection was the ratio of the bid to the vessel's revenues from 
groundfish during a specified period. NOAA made grant awards to 11 
vessel owners totaling $1.89 million. In addition to the 11 Federal 
multispecies limited access fishing permits surrendered under the pilot 
program, an additional 15 limited access fishing permits for the summer 
flounder, ocean quahog, squid, mackerel, and butterfish fisheries were 
retired.
    The pilot project demonstrated that industry interest in a buy-out 
was high, and the project seemed to be favorably received by the 
public. Between September 1996 and May 1998, the program was expanded 
with very few changes to procedures or selection criteria, and $23 
million was awarded to remove an additional 68 vessels from the 
multispecies fishery, bringing the total number of vessels removed to 
79. As with the pilot project, many other limited access permits were 
forfeited.
    In a June 2000 report to the House Committee on Resources, the 
Government Accounting Office (GAO) presented an analysis of the fishery 
buyback programs in New England, the Bering Sea, and Washington State, 
specifically commenting on the New England program as follows:
    [The] New England buyback removed 79 vessels that accounted for 
19 percent of the groundfish catch in that fishery. However, 62 
additional vessels have become active since the buyback because no 
steps were taken during the program to prevent previously inactive 
vessels from engaging in fishing. These vessels have begun to erode 
the capacity reductions made by the buyback because they have 
replaced fishing capacity by as much as two-thirds of that purchased 
through the buyback. (p. 4)
    One concern regarding subsequent buyout programs is that, as in the 
past, previously unutilized capacity or CPH multispecies permits will 
be activated by the industry to replace any active permits that may be 
removed through the buyback program and little net reduction in 
capacity utilization will be realized. GAO recommended that NMFS design 
future buyback programs to restrict the use of unused permits in the 
buyback fishery with excess fishing capacity and identify mechanisms to 
minimize the incentives to increase fishing capacity in a buyback 
fishery.
    In addition, section 312(b) of the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act) authorizes 
fishing capacity reduction programs to be administered by NMFS under 
certain conditions and if requested by a fishery management council or 
the governor of a state. Section 312(b)(1)(B)(i), in particular, 
requires that the fishery management plan affected by such a program 
will ``prevent replacement of fishing capacity removed by the program 
through a moratorium on new entrants, restrictions on vessel upgrades, 
and other effort control measures, taking into account the full 
potential fishing capacity of the fleet.'' In response to the 
aforementioned criticism from the GAO, the Secretary of Commerce, in a 
report to the House Committee on Government Reform, committed to 
applying certain of the section 312(b) conditions to all future fishing 
capacity reduction programs: ``[E]xcept in the most extreme cases of 
financial distress in which some form of immediate relief is needed, we 
will apply section 312(b)(1)(B)[i] requirements to disaster assistance 
under other authorities even though the practical effect may often be 
to exclude the use of disaster assistance funds for capacity 
reduction.'' (Secretary Mineta to the Honorable Dan Burton, dated 9 
November 2000).
    The fishery has been a limited access fishery and closed to new 
entrants since implementation of FMP Amendment 5 in May 1994. Vessel 
upgrades are limited by the FMP as implemented at 50 CFR 
648.4(a)(1)(i)(E)-(F). Limitations to upgrading of vessel horsepower, 
length, and tonnage are discussed in the proposed program details 
below. Finally, effort control measures have been in place in the 
multispecies fishery since May 1994 and, though modified since, remain 
in effect.
    Although there is no measure proposed as part of this FCRP that 
would restrict the activation of unused permits in the buyback fishery, 
the Council's establishment of a control date for the multispecies and 
Atlantic sea scallop fisheries is an existing measure that is intended 
to discourage speculative reactivation of latent capacity. Further, the 
proposed FCRP has been designed to encourage participation by 
permittees who are presently not active in the fishery and who comprise 
some proportion of the finite capacity pool. These permittees are most 
likely to seek compensation for voluntarily surrendering their permits 
because generally they are gaining least by holding on to permits. If 
permittees who are active in the fishery participate in this FCRP, 
their effort may be replaced by reactivation of unused permits, but it 
is less likely that active permits will be retired because of the 
criteria established by the FCRP. In any case, the removal of permits, 
whether latent or active, is going to directly reduce the amount of 
capacity that, otherwise, can be exercised in the multispecies fishery, 
particularly as the fishery is rebuilt to more productive levels.

Proposed FCRP

    To date, the fishing capacity reduction programs in the Northeast 
have been designed to compensate permit holders who disable, scrap, 
scuttle, or transfer their vessels to non-fishing purposes and 
surrender all their Federal fishing permits. The term ``vessel 
buyback'' aptly described the programs. The legislation that initiated 
the current FCRP specifies that the funds ``shall be used to support a 
voluntary fishing capacity reduction program in the Northeast 
multispecies fishery that permanently revokes multispecies, limited 
access fishing permits so as to obtain the maximum sustained reduction 
in fishing capacity . . . and to prevent the replacement of fishing 
capacity removed by the program.'' NMFS intends to satisfy this 
statutory requirement by disbursing funds for the surrender of permits. 
NMFS has no intention of buying or otherwise directly removing vessels 
from the fishery.
    It is likely that some vessel owners will be willing to surrender 
their multispecies permit through this FCRP while retaining other 
limited access permits and participating in other fisheries. The 
practice of splitting one vessel's suite of limited access permits to 
allow one or more other vessels to operate in separate limited access 
fisheries is prohibited by 50 CFR 648.4(a)(1)(i)(L). Because, under 
this FCRP, the multispecies limited access permit would be surrendered 
to the Government, and not transferred to another vessel, the vessel's 
remaining limited access permits would remain valid. In other words, 
permittees with more than one limited access permit would not be 
required to surrender all of their permits to participate in the FCRP.
    On the other hand, permittees may certainly offer to surrender 
limited access permits in addition to their multispecies permits. If a 
multispecies permit holder plans to participate in this FCRP by 
submitting a bid, he/she may offer to surrender limited access permits 
in addition to the multispecies permit. Bid ranking is to be based on 
the baseline characteristics and other factors

[[Page 17671]]

related only to the multispecies permit. However, the offer to 
surrender additional limited access permits may be considered by NMFS 
as a means of favorably adjusting a bid's rank, should two or more bids 
be ranked equivalently. NMFS is seeking comments on how offers to 
surrender additional permits should be valued and ranked in the bid 
review process.
    During the multispecies crisis, many industry members have shifted 
the focus of their fishing effort to underutilized species. Changes in 
industry behavior, along with a variety of fishery management measures, 
has resulted in limited recovery of some of the multispecies stocks. 
While a vessel's active participation in the multispecies fisheries 
and/or the expense of re-outfitting the vessel for participation in 
multispecies fishery may affect the value the owner places on the 
multispecies permit (and, thus, may affect the bid that is proffered), 
the present status of the vessel and its recency of participation in 
the multispecies fishery are not to be qualifiers for participation in 
this proposed FCRP.
    In contrast to the earlier fishing capacity reduction programs, 
which weighted and ranked bids with respect to the vessel's recent 
multispecies revenues, a capacity reduction program that is focused on 
removing latent as well as active permits from the fishery must 
consider potential fishing capacity of the permitted vessel as a factor 
in the value of the permit. Each multispecies limited access permit has 
a vessel baseline associated with it. The baseline consists of four 
vessel characteristics -- length overall (LOA), gross registered 
tonnage (GRT), net tonnage (NT), and horsepower (HP) -- and was set in 
1994-95 to reflect the status of the vessel at the time the permit 
category became limited access. The purpose of the baseline is to limit 
capitalization in the fishery. Permit holders are allowed to upgrade 
LOA, GRT, and/or NT by up to 10 percent only once for the life of the 
permit. Horsepower may be upgraded by 20 percent one time during the 
life of the permit; the HP upgrade need not be contemporaneous with the 
one-time LOA, GRT, and/NT upgrade. Upgrading may be achieved through 
vessel alterations or purchase of a replacement vessel that falls 
within the upgrade constraints.
    NMFS is considering two methods for ranking bids under the proposed 
FCRP, each of which would factor in vessel baseline characteristics. 
Under one method, NMFS would prepare an estimate of any potential 
bidders vessel capacity to harvest multispecies, weighted by DAS 
allocations, using mathematical programming methods. This estimate of 
harvest capacity would be an inference, based on capacity estimates for 
similarly configured vessels that are actively working in the fishery. 
It would consider vessel baseline characteristics (GRT, HP, and LOA) 
vessel age, crew size, and perhaps other vessel and operational 
characteristics. Bids would then be scored by dividing the vessel's 
estimated capacity by the bid, and the highest scoring permits would be 
selected in descending order. Under this bid ranking alternative, 
bidders, if they choose, may request that NMFS determine their vessel's 
capacity prior to submission of the bid.
    Another approach to ranking bids would be to develop a formula that 
has been determined to be highly correlated with capacity. The formula 
would be based on vessel baseline characteristics, where each parameter 
is weighted corresponding to its importance with respect to fishing 
capacity. For example, the formula might use a greater factor by which 
to multiply HP than it would for GRT because HP is a more important 
element in determining a vessel's fishing capacity. The formula might 
not use all of the baseline characteristics. LOA and GRT are highly 
correlated, thus one might be dropped from the formula for the sake of 
simplicity without affecting the outcome of the ranking process. The 
formula could also include a weighting factor for DAS or type of 
permit. For example, a hook-gear only permit can never be converted to 
a permit that would allow the use of gill net or trawl gear, and, thus, 
capacity for the Hook Gear category is more gear limited. Also, permits 
in the Small Vessel category do not restrict DAS, but do restrict 
landings of cod, haddock, and yellowtail flounder, so this might have 
to be balanced in the formula if bids are to be ranked without respect 
to permit categories. The formula would be announced by publication in 
the Federal Register and bidders would be able to work through the 
formula using their own baseline characteristics to inform their 
development of the bids. To rank the bids, the outcome of the formula 
would be verified by NMFS and divided by the bid, and the higher 
scoring permits would be selected in descending order.
    No matter which method is adopted, vessel baseline will be an 
important factor in the ranking. From the fall of 1998 through 1999, 
NMFS initiated the Baseline Audit Program for multispecies and scallop 
limited access permit categories. NMFS contacted all permittees and 
asked them to verify and/or correct the permit baseline information in 
NMFS records. The time window for correcting permit baselines has 
closed, and NMFS considers its records on permit baselines for 
multispecies and scallop limited access permit categories to be 
complete and up to date. The audit program did not include all CPH 
status permits. Some CPH baselines have been verified, but some have 
not. If owners of CPH status permits without verified baselines want to 
participate in the FCRP, NMFS will work with the applicant to 
establish/verify the vessel baseline. For all other FCRP participants, 
NMFS intends to use the baseline information as verified or corrected 
through the Baseline Audit Program.
    To represent adequately the full potential capacity of a permit and 
to improve the consistency of the ranking process, NMFS is considering 
using the permitted vessel baseline plus the authorized upgrade 
capacity available to the vessel as the parameters for the capacity 
evaluations. For example, because a one time upgrade of up to 20 
percent of vessel's baseline HP is authorized, a vessel with a 200-HP 
baseline would be considered for the purposes of this program to have 
240 HP, if the owner has not yet exercised the upgrade option. NMFS 
requests comments from the public on these bid ranking methods and the 
parameters that should be taken into consideration under each. NMFS 
requests comments about the upgrade adjustment where the upgrade in LOA 
of a vessel under a Category C permit (Small Boat Exemption) would 
render it ineligible for the permit category.
    This FCRP is intended to address unutilized fishing capacity in the 
multispecies fishery by removing limited access permits. In 
implementing this program, NMFS is tasked ``to obtain the maximum 
sustained reduction in fishing capacity at the least cost.'' If 
participation is insufficient in this FCRP to use up all the allocated 
funds, or if NMFS determines the bids are too high to satisfy the 
letter and intent of this ``least cost'' provision, then NMFS retains 
the discretion to reject bids, to close the FCRP, and to restructure it 
using the remaining funds to meet the statutory goals.

II. Definitions

    CPH--a person who does not currently own a fishing vessel, but who 
has owned a qualifying vessel that has sunk, been destroyed, or 
transferred to another person, and has applied for and received a CPH. 
Issuance of a valid CPH preserves the eligibility of the applicant to 
apply for a limited access permit for

[[Page 17672]]

a replacement vessel based on the qualifying vessel's fishing and 
permit history at a subsequent time, subject to the replacement 
provisions specified in 50 CFR 648.4.
    Regulated species--those species that are regulated under the FMP 
and are limited to cod, haddock, pollock, yellowtail flounder, winter 
flounder, gray sole, American plaice, windowpane flounder, white hake, 
and redfish.
    Valid multispecies limited access permit--those limited access 
permits defined in the regulations implementing the FMP, at 50 CFR 
651.4(b). To be valid, a permit must be free of all permit sanctions, 
pending or otherwise, at the time that the application is submitted, 
and at the time of closing.

III. Request for Comment on the Proposed Program

    The purpose of this FCRP is to reduce permanently the maximum 
fishing capacity within the multispecies fishery through the removal of 
limited access fishing permits. Like previous fishing capacity 
reduction programs, this FCRP is a voluntary market based program 
intended to remove the greatest amount of fishing capacity at the 
lowest cost. It will allow the applicant to establish a price for 
offered permits that will be scored in a competitive manner.

Proposed Application Procedures

A. Eligible Applicants

    NMFS intends to consider applications to this FCRP only from owners 
of Federal multispecies permits in limited access categories or CPH 
status, in accordance with the procedures that will be set forth in a 
future Federal Register publication. An owner may be an individual who 
is a citizen or national of the United States; or a citizen of the 
Northern Mariana Islands; or a corporation, partnership, association 
(non-profit or otherwise), trust, or other nongovernmental entity; if 
such an entity is a citizen within the meaning of section 802 of the 
Shipping Act, 1916, as amended (46 U.S.C. App. 802). Federal Government 
agencies or employees, including full-time, part-time, and intermittent 
personnel, and Regional Fisheries Management Council members and 
employees are not eligible to submit an application.
    The multispecies permits that are to be offered for forfeiture must 
be valid limited access fishing permits, free of any permit sanctions, 
pending or otherwise, both at time of application and at closing. Any 
additional limited access fishing permits that are offered to be 
surrendered must also be free of any permit sanctions, pending or 
otherwise, both at time of application and at closing. NMFS seeks 
comments from the public on the participant eligibility for the FCRP.

B. Proposed Application and Review Processes

    NMFS intends to give vessel owners 60 days from the date of 
publication in the Federal Register of the final FCRP Notice to submit 
an FCRP application form. The form may request the following 
information: Owner, permit number, permit vessel baseline, and, as 
applicable, vessel name, vessel number, and other relevant information 
related to vessel configuration and operations. Applicants will be 
required to submit one signed original application. No facsimile 
applications will be accepted. Proof of receipt may be obtained by 
sending an application by certified mail, return receipt requested. The 
anticipated time required to process applications is 120 days from the 
closing date of the solicitation.
    NMFS intends to send an application form along with a copy of the 
final Federal Register notification announcing the availability of 
funds under the FCRP to all multispecies limited access fishing permit 
holders. Applications will also be made available at the NMFS Northeast 
Regional Office and through the NMFS Northeast Regional Office's 
website, http://www.wh.whoi.edu/ro/doc/nero.html.
    Two methods of ranking bids under the FCRP are discussed above. If 
the mathematical programming method, in which NMFS develops an estimate 
of permitted capacity based on input from program participants, is 
selected, then NMFS, upon request, will provide prospective applicants 
with a capacity estimate prior to their submission of a bid. This step 
would not be required. Applicants could simply submit a bid in 
accordance with published procedures without knowing their vessel's 
estimated capacity. If the formulaic method is selected, the formula 
for ranking will be published in the Federal Register notice, but, 
applicants will not be required to calculate their own vessel's 
capacity.
    As applications are received, NMFS will review them for 
completeness and correctness. Once the 60-day period for applications 
closes, NMFS intends to rank all timely bids mathematically, as 
described above. Offers to surrender limited access permits in addition 
to the multispecies permit will not be used to determine the initial 
ranking, but will be used distinguish between similarly ranked 
applicants. That is, offers to surrender non-multispecies limited 
access permits will be considered by NMFS as tie-breakers when choosing 
between otherwise equivalent bids.
    Determining a bid amount is extremely important, since this will be 
a key factor in the success of an applicant. If the bid is too high in 
relation to the permit's baseline capacity, the bid may not be 
competitive.
    The Administrator, Northeast Region, NMFS, will determine which 
applicants are eligible with competitive bids based on the ranking of 
the applications. NMFS may initially find more eligible applications 
than it can fund, but will consider all such applications in order of 
their ranking. NMFS, based upon established criteria, will reserve the 
right to reject any or all applications and may solicit additional 
applications. If additional applications are solicited, or if the 
program is restructured to encourage participation, all applications 
submitted previously and not determined to be eligible with competitive 
bids will be considered rejected. NMFS will notify eligible applicants, 
whose bids are competitive, in writing. However, eligible applicants 
are not guaranteed funding by simply having a competitive bid. The bid 
must be selected and the application will be subject to a thorough 
investigation to ensure the owners and permits meet the eligibility 
requirements prior to the disbursal of the awards.
    NMFS will provide notice to the permit owners for which an 
eligibility investigation has been successfully completed. Proprietary 
information submitted by applicants will only be disclosed to Federal 
officials who are responsible for the FCRP or otherwise when required 
by applicable disclosure statutes or by court order.
    Representatives from the NMFS Financial Services Division will 
establish the programmatic terms for the awards. These terms will be 
binding on the applicants and will control the applicant's post-award 
rights and obligations. Award terms will include provisions to ensure 
that applicants do not violate fisheries laws and regulations prior to 
closing. At their own expense, applicants may choose to retain closing 
attorneys to represent their interests. The method of payment for this 
FCRP has yet to be determined. NMFS may use purchase orders, grants, or 
other means for distributing the funds, depending on the amount of the 
awards and the time window for disbursal. NMFS will make every effort 
to ensure awards are paid in a timely manner. Depending on the payment 
method and the amount, awardees may be required to complete additional

[[Page 17673]]

forms to certify they are in good financial standing with the 
government, their workplace is drug-free and they will limit their 
governmental lobbying activities. The specific details of these 
certifications will be published in the Federal Register.
    NMFS requests comments from the public on the appropriateness of 
spending the appropriated monies by this proposed application and bid 
process, the methods to be used for ranking bids, the process for 
distributing funds and all aspects of this proposed FCRP.

IV. Public Information Meetings

    To gain information from the public on how best to implement a 
fishing capacity reduction program utilizing the $10.0 million 
appropriation, NMFS is planning the following public meetings, which 
will start at 7 p.m.:
    1. May 8, 2001 - Gloucester, MA - NMFS, 1 Blackburn Drive, 978-281-
9136
    2. May 9, 2001 - Portland, ME - Holiday Inn By the Bay, 88 Spring 
Street, 207-775-2311
    3. May 10, 2001 - Plymouth, MA - John Carver Inn, 25 Summer Street, 
508-746-7100
    4. May 10, 2001 - Ellsworth, ME - White Birches Motel, U.S. Route 
1, 207-667-3621
    5. May 15, 2001 - Portsmouth NH - Comfort Inn, Route 1, 603-433-
3338
    6. May 15, 2001 - Riverhead, NY - Ramada Inn East, 1830 Route 25, 
631-369-2200
    7. May 16, 2001 - New Bedford, MA - New Bedford Inn, 500 Hathaway 
Road, 508-997-1231
    8. May 17, 2001 - Toms River, NJ - Holiday Inn, 290 Route 37E, 732-
244-4000
    9. May 17, 2001 - Narragansett, RI - URI Coastal Institute, 
Graduate School of Oceanography, Corliss Auditorium, South Ferry Road, 
401-874-6110
    Additional meetings may be requested by the public and will be 
announced in the Federal Register as they are scheduled.

    Authority: 16 U.S.C. 4107

    Dated: March 27, 2001.
William T. Hogarth,
Acting Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
[FR Doc. 01-8048 Filed 4-2-01; 8:45 am]
BILLING CODE 3510-22-S