[Federal Register Volume 71, Number 150 (Friday, August 4, 2006)]
[Rules and Regulations]
[Pages 44231-44233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12647]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 679 and 680

[Docket No. 060424108-6204-02; I.D. 040706A]
RIN 0648-AT43


Fisheries of the Exclusive Economic Zone Off Alaska; Cost 
Recovery Program for North Pacific Halibut, Sablefish, and Bering Sea 
and Aleutian Islands Crab Individual Fishing Quota Programs

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 amend the Individual Fishing Quota 
(IFQ) Cost Recovery Program for the Halibut and Sablefish IFQ and the 
Bering Sea and Aleutian Islands (BSAI) Crab Rationalization Programs. 
This action modifies the procedure NMFS uses to publish notification of 
adjustment of the IFQ fee percentage for the IFQ Cost Recovery Program 
in the Halibut and Sablefish IFQ and the Crab Rationalization Programs. 
This action is necessary to provide timely and efficient notice of fee 
obligations while ensuring consistency with all applicable statutes. 
This action is intended to improve the fee collection methods required 
for all Alaska IFQ programs under the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act) and is necessary 
to promote the objectives of the Magnuson-Stevens Act with respect to 
the IFQ fisheries managed by NMFS in the Alaska Region.

DATES: Effective on September 5, 2006.

ADDRESSES: Copies of the Categorical Exclusion (CE), regulatory impact 
review (RIR), and regulatory flexibility certification prepared for 
this action are available from NMFS, Alaska Region, P.O. Box 21668, 
Juneau, AK 99802-1668, Attn: Ellen Walsh, or from NMFS, Alaska Region, 
709 West 9th Street, Room 453, Juneau, AK 99801, or by calling the 
Sustainable Fisheries Division, Alaska Region, NMFS, at 907-586-7228.

FOR FURTHER INFORMATION CONTACT: Bubba Cook, 907-586-7425 or 
[email protected].

SUPPLEMENTARY INFORMATION:

Halibut and Sablefish IFQ Cost Recovery

    On March 20, 2000, NMFS published regulations (65 FR 14919) 
implementing the IFQ Cost Recovery Program for IFQ landings of halibut 
and sablefish (set forth at 50 CFR 679.45). Under the regulations, an 
IFQ permit holder incurs a cost recovery fee liability for every pound 
of IFQ halibut and IFQ sablefish that is landed under his or her IFQ 
permit(s). The IFQ permit holder is responsible for self-collecting the 
fee liability for all IFQ halibut and IFQ sablefish landings on his or 
her permit(s). The IFQ permit holder also is responsible for submitting 
a fee liability payment to NMFS on or before the due date of January 
31, following the year in which the IFQ landings were made. For each 
permit, the dollar amount of the fee due is determined by multiplying 
the annual IFQ fee percentage (3 percent or less) by the ex-vessel 
value of each IFQ landing. If the permit holder has more than one 
permit, the total amounts of each permit are added.
    Section 304(d)(2)(B) of the Magnuson-Stevens Act sets a maximum fee 
of 3 percent of the ex-vessel value of fish harvested under an IFQ 
program. Current regulations allow NMFS to reduce the fee percentage if 
actual management and enforcement costs are recoverable through a 
lesser percentage. NMFS will not know the actual annual costs of IFQ-
related management and enforcement until after the end of each Federal 
fiscal year (September 30). If the management and enforcement costs 
total less than the 3 percent fee, NMFS will reduce the fee percentage 
for the new Federal fiscal year. Fishermen will not know at the time 
they sell their IFQ fish exactly what fee percentage will be applied to 
their IFQ landings made from February (season opening) through 
September (Federal fiscal year-end). Therefore, NMFS encourages IFQ 
permit holders to set aside the full 3 percent throughout the fishing 
year so a lump sum payment may be made by January 31 of the following 
calendar year. Early payments are allowed but do not relieve a permit 
holder of associated reporting requirements.

Crab Rationalization Cost Recovery

    In 2005, section 313(j) of the Magnuson-Stevens Act provided 
supplementary authority to section 304(d)(2)(A) and additional detail 
for cost recovery provisions specific to the Crab Rationalization 
Program. As a quota program, the Crab Rationalization Program must 
follow the statutory provisions set forth by section 304(d) and section 
313(j) of the Magnuson-Stevens Act.
    Section 313(j) requires the Secretary to approve a cost recovery 
program for the Crab Rationalization Program, conducted in accordance 
with the existing Halibut and Sablefish IFQ cost recovery program. 
Similar to the Halibut and Sablefish IFQ cost recovery program, the 
Crab Rationalization cost recovery program allows for the collection of 
actual management and enforcement costs up to 3 percent of ex-vessel 
gross revenues and a loan program using 25 percent of the fees 
collected.
    Section 313(j) includes specific cost recovery requirements to 
accommodate the crab processing industry and to address problems 
experienced under the Halibut and Sablefish IFQ cost recovery program. 
This section provides NMFS the authority to collect 133 percent of the 
actual costs of management and enforcement. By collecting 133 percent, 
25 percent of that amount can be set aside for the IFQ loan program, 
authorized by section 303(d)(4), and the remaining 75 percent more 
fully reimburses the management and enforcement costs of the program. 
Additionally, section 313(j) requires cost recovery fees to be paid in 
equal shares by the harvesting and processing sectors. Catcher/
Processors, a combination of both sectors, pay the full fee percentage.
    NMFS developed the Crab Rationalization cost recovery program to 
conform with statutory requirements and to partially compensate the 
agency for the unique added costs of management and enforcement of the 
Crab Rationalization Program. Key provisions of the Crab 
Rationalization cost recovery program include (1) a new definition and 
application of ``fee liability; (2) the establishment of a 
Registered Crab Receiver (RCR) permit system to streamline management 
and reporting; (3) the establishment of a ``crab fishing year'' for 
biological and administrative purposes; and (4) a new administrative 
process that requires the collection and submission of fees by RCRs 
rather than requiring separate billings to each person that receives a 
crab allocation (crab allocation holder). The crab allocations include 
IFQ, Crew IFQ, Individual Processing Quota (IPQ), Community Development 
Quota (CDQ), and the Adak community allocation.

[[Page 44232]]

    In the crab rationalization fishery, a crab allocation holder 
generally incurs a cost recovery fee liability for every pound of crab 
landed. The RCR permit holder must collect the fee liability of the 
crab allocation holder landing crab. Additionally, the RCR permit 
holder must self-collect his or her own fee liability for all crab 
delivered to the RCR. The RCR permit holder is responsible for 
submitting this payment to NMFS on or before the due date of July 31, 
following the crab fishing year in which payment for the crab is made. 
The dollar amount of the fee due is determined by multiplying the fee 
percentage (not to exceed 3 percent) by the ex-vessel value of crab 
debited from the allocation. Specific details on the Crab 
Rationalization cost recovery program may be found in the implementing 
regulations for the Crab Rationalization Program set forth at Sec.  
680.44, and published March 2, 2005, at 70 FR 10174.

The Effect of this Action

    This final rule amends the existing regulations at Sec. Sec.  
679.45 and 680.44 addressing the methods by which NMFS calculates fee 
percentages and provides notice under the cost recovery provisions of 
the Halibut and Sablefish IFQ Program and Crab Rationalization Program. 
Calculation of the fee percentage under this action becomes a 
ministerial duty conducted by NMFS. This action does not affect the ex-
vessel value determination under either program nor does it affect the 
current structure or administration of the standard prices calculated 
for the Halibut and Sablefish IFQ Program or the Catcher/Processor ex-
vessel values calculated for the Crab Rationalization Program. NMFS 
makes minor changes to the current fee regulations to ensure full 
compliance with the APA (5 U.S.C. 501 et seq., 701 et seq.) while 
improving administrative efficiency.
    The principal elements of this amendment are described and 
explained in detail in the preamble to the proposed rule and are not 
repeated here. This final rule is substantively the same as the 
proposed rule published May 8, 2006 (71 FR 26728). However, this final 
rule corrects an incorrect cross-reference at Sec.  680.44(g) by 
changing the reference citation for Sec.  680.5(f) to Sec.  680.5(g).
    The proposed rule to amend the IFQ Cost Recovery Program for the 
Halibut and Sablefish IFQ and the BSAI Crab Rationalization Programs 
was published in the Federal Register on May 8, 2006 (71 FR 26728). 
Comments on the proposed rule were invited through June 7, 2006. NMFS 
received no comments on the proposed rule.

Classification

    The Administrator, Alaska Region, NMFS, determined that the 
regulatory amendment is necessary for the conservation and management 
of the groundfish fisheries off Alaska and that it is consistent with 
the Magnuson-Stevens Act and other applicable laws.
    This rule has been determined to be not significant for purposes of 
Executive Order 12866.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration during the proposed rule stage that this action would 
not have a significant economic impact on a substantial number of small 
entities. The factual basis for the certification was published in the 
proposed rule and is not repeated here. No comments were received 
regarding this certification or the economic impact of the rule. As a 
result, a regulatory flexibility analysis was not required and none was 
prepared.

List of Subjects in 50 CFR Parts 679 and 680

    Alaska, Determinations and appeals, Fisheries, Recordkeeping and 
reporting requirements.

    Dated: July 31, 2006.
Samuel D. Rauch III
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, 50 CFR parts 679 and 680 are 
amended as follows:

PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

0
1. The authority citation for part 679 continues to read as follows:

    Authority: 16 U.S.C. 773 et seq.; 1540(f); 1801 et seq.; 1851 
note; 3631 et seq.


0
2. In Sec.  679.45 paragraph (d) is revised to read as follows:


Sec.  679.45  IFQ cost recovery program.

* * * * *
    (d) IFQ fee percentage--(1) Established percentage. The annual IFQ 
fee percentage is the amount as determined by the factors and 
methodology described in paragraph (d)(2) of this section. This amount 
will be announced by publication in the Federal Register in accordance 
with paragraph (d)(3) of this section. This amount must not exceed 3 
percent pursuant to 16 U.S.C. 1854(d)(2)(B).
    (2) Calculating fee percentage value. Each year NMFS shall 
calculate and publish the fee percentage according to the following 
factors and methodology:
    (i) Factors. NMFS must use the following factors to determine the 
fee percentage:
    (A) The catch to which the IFQ fee will apply;
    (B) The ex-vessel value of that catch; and
    (C) The costs directly related to the management and enforcement of 
the IFQ program.
    (ii) Methodology. NMFS must use the following equation to determine 
the fee percentage:
    100 x (DPC / V)
    where:
    ``DPC'' is the direct program costs for the IFQ fishery for the 
previous fiscal year, and
    ``V'' is the ex-vessel value of the catch subject to the IFQ fee 
for the current year.
    (3) Publication--(i) General. During or before the last quarter of 
each year, NMFS shall publish the IFQ fee percentage in the Federal 
Register. NMFS shall base any calculations on the factors and 
methodology in paragraph (d)(2) of this section.
    (ii) Effective period. The calculated IFQ fee percentage shall 
remain in effect through the end of the calendar year in which it was 
determined.
    (4) Applicable percentage. The IFQ permit holder must use the IFQ 
fee percentage in effect at the time an IFQ landing is made to 
calculate his or her fee liability for such landed IFQ pounds. The IFQ 
permit holder must use the IFQ percentage in effect at the time an IFQ 
retro-payment is received by the IFQ permit holder to calculate his or 
her IFQ fee liability for the IFQ retro-payment.
* * * * *

PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF 
ALASKA

0
3. The authority citation for part 680 continues to read as follows:

    Authority: 16 U.S.C. 1862.

0
4. In Sec.  680.44 paragraphs (a)(2)(iii), (c)(1) through (3), and (g) 
are revised; paragraph (c)(4) is removed; and paragraph (c)(5) is 
redesignated as paragraph (c)(4) to read as follows:


Sec.  680.44  Cost recovery.

    (a) * * *
    (2) * * *
    (iii) NMFS will provide a summary to all RCR permit holders during 
the last quarter of the crab fishing year. The summary will explain the 
fee liability determination including the current fee percentage, 
details of raw crab pounds debited from CR allocations by permit,

[[Page 44233]]

port or port-group, species, date, and prices.
* * * * *
    (c) * * *
    (1) Established percentage. The crab fee percentage is the amount 
as determined by the factors and methodology described in paragraph 
(c)(2) of this section. This amount will be announced by publication in 
the Federal Register in accordance with paragraph (c)(3) of this 
section. This amount must not exceed 3 percent pursuant to 16 U.S.C. 
1854(d)(2)(B).
    (i) The calculated crab fee percentage will be divided equally 
between the harvesting and processing sectors.
    (ii) Catcher/Processors must pay the full crab fee percentage 
determined by the fee percentage calculation for all CR crab debited 
from a CR allocation.
    (2) Calculating fee percentage value. Each year NMFS shall 
calculate and publish the fee percentage according to the following 
factors and methodology:
    (i) Factors. NMFS must use the following factors to determine the 
fee percentage:
    (A) The catch to which the crab cost recovery fee will apply;
    (B) The ex-vessel value of that catch; and
    (C) The costs directly related to the management and enforcement of 
the Crab Rationalization Program.
    (ii) Methodology. NMFS must use the following equations to 
determine the fee percentage:
    Harvesting and Processing Sectors: [100 (DPC/ V)] 0.5
    Catcher/Processors: 100 (DPC /V)
    where:
    ``DPC'' is the direct program costs for the Crab Rationalization 
Program for the previous fiscal year, and
    ``V'' is the ex-vessel value of the catch subject to the crab cost 
recovery fee liability for the current year.
    (3) Publication--(i) General. During the first quarter of each crab 
fishing year, NMFS shall calculate the crab fee percentage based on the 
calculations described in paragraph (c)(2) of this section.
    (ii) Effective period. The calculated IFQ fee percentage remains in 
effect through the end of the crab fishing year in which it was 
determined.
* * * * *
    (g) Fee submission form. An RCR must submit an RCR permit holder 
fee submission form according to Sec.  680.5(g).
[FR Doc. E6-12647 Filed 8-3-06; 8:45 am]
BILLING CODE 3510-22-S