[Federal Register Volume 73, Number 129 (Thursday, July 3, 2008)]
[Rules and Regulations]
[Pages 38144-38154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-15195]



[[Page 38144]]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 080130104-8560-02]
RIN 0648-AW46


Atlantic Highly Migratory Species; Renewal of Atlantic Tunas 
Longline Limited Access Permits; Atlantic Shark Dealer Workshop 
Attendance Requirements

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

ACTION: Final rule.

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SUMMARY: This final rule amends the regulations governing the renewal 
of Atlantic tunas longline limited access permits (LAPs), and amends 
the workshop attendance requirements for businesses issued Atlantic 
shark dealer permits. Specifically, these regulatory changes allow for 
the renewal of Atlantic tunas longline LAPs that have been expired for 
more than one year by the most recent permit holder of record, provided 
that the applicant has been issued a swordfish LAP (other than a 
handgear LAP) and a shark LAP, and all other requirements for permit 
renewal are met. Also, this rule amends the Atlantic Shark 
Identification Workshop requirements by: specifying that a workshop 
certificate be submitted upon permit renewal, and later possessed and 
available for inspection, for each place of business listed on the 
dealer permit which first receives Atlantic sharks by way of purchase, 
barter, or trade (rather than for each location listed on their dealer 
permit); and requiring that extensions of a dealer's business, such as 
trucks or other conveyances, must possess a copy of a valid dealer or 
proxy certificate issued to a place of business listed on the dealer 
permit.

DATES: This final rule is effective August 4, 2008.

ADDRESSES: Copies of the final Regulatory Impact Review/Final 
Regulatory Flexibility Analysis (Final RIR/FRFA); and, related 
documents including a 2007 Final Environmental Assessment (EA) and 
final rule (72 FR 31688, June 7, 2007) implementing revised vessel 
upgrading regulations for vessels issued Atlantic tunas longline, 
swordfish, and shark LAPs; and the 2006 Final Consolidated Atlantic 
Highly Migratory Species Fishery Management Plan (Consolidated HMS FMP) 
and its final rule (71 FR 58058, October 2, 2006) implementing Atlantic 
Shark Identification Workshops are available from the HMS Management 
Division website at: http://www.nmfs.noaa.gov/sfa/hms or by contacting 
Richard A. Pearson (see FOR FURTHER INFORMATION CONTACT).

FOR FURTHER INFORMATION CONTACT: Richard A. Pearson, by phone: 727-824-
5399; by fax: 727-824-5398.

SUPPLEMENTARY INFORMATION:

Background

    Atlantic tuna and swordfish fisheries are managed under the 
authority of the Magnuson-Stevens Fishery Conservation and Management 
Act (Magnuson-Stevens Act) and the Atlantic Tunas Convention Act 
(ATCA). Atlantic sharks are managed under the authority of the 
Magnuson-Stevens Act. The Consolidated HMS FMP is implemented by 
regulations at 50 CFR part 635.

Renewal of Atlantic Tunas Longline LAPs

    LAPs were first implemented in HMS fisheries in 1999 primarily to 
provide a limit on harvesting capacity in Atlantic swordfish and shark 
fisheries to reduce the likelihood of exceeding the available quota for 
these species, and to facilitate other fishery management measures 
implemented at the time. The Atlantic tunas longline LAP was also 
established at that time because of the potential for encountering 
swordfish and sharks when fishing with pelagic longline (PLL) gear for 
Atlantic tunas, and vice-versa. In recognition of the interrelationship 
between these longline fisheries, the Atlantic tunas longline LAP 
complemented the management measures that had been developed for 
Atlantic swordfish and shark.
    Since 1999, vessel owners have been required to simultaneously 
possess three permits (Atlantic tunas longline; swordfish directed or 
incidental; and, shark directed or incidental) in order to retain 
Atlantic tunas caught with longline gear, or to retain swordfish caught 
with any gear other than handgear. An Atlantic tunas longline LAP is 
only considered valid, or useable, if the vessel has also been issued 
both a shark LAP and a swordfish LAP (other than handgear). Similarly, 
a swordfish LAP (other than handgear) is only considered valid, or 
useable, when a vessel has also been issued both a shark LAP and an 
Atlantic tunas longline LAP. The current regulations for each of these 
permits specify that only persons holding non-expired LAPs in the 
preceding year are eligible to renew those permits.
    In 2007, NMFS identified approximately 40 vessel owners that had 
allowed their Atlantic tunas longline LAPs to lapse for more than one 
year, thus making them ineligible to renew that permit. In most cases, 
the vessel owners had maintained their accompanying swordfish and shark 
LAPs through timely renewal. However, because they are ineligible to 
renew their Atlantic tunas longline LAP, they are not currently allowed 
to fish for tunas with PLL gear or to retain swordfish, even though 
they have been issued a swordfish permit. Currently, the number of 
available Atlantic tunas longline LAPs is insufficient to match the 
number of available swordfish and shark incidental or directed permits, 
thus rendering many swordfish permits invalid, or unusable, because all 
three permits are required to retain swordfish (with any gear other 
than handgear).
    The scope of this problem was not fully recognized until September 
2007, when NMFS was determining which vessels qualified for revised 
vessel upgrading regulations (72 FR 31688, June 7, 2007), depending 
upon whether the vessel was concurrently issued a directed or 
incidental swordfish LAP, a directed or incidental shark LAP, and an 
Atlantic tunas longline LAP. At that time, NMFS learned that 
approximately 40 vessel owners had inadvertently failed to renew their 
Atlantic tunas longline LAP because of operational constraints 
associated with the Atlantic tunas longline permit issuance system, or 
because of significant differences in the renewal procedures for 
swordfish/shark LAPs and the Atlantic tunas longline LAP.
    There was confusion within the fishing industry regarding the 
renewal, issuance, eligibility, and applicability of the one-year 
renewal requirement for the Atlantic tunas longline LAP because the 
operational procedures for renewing an Atlantic tunas longline LAP were 
substantially different than for swordfish and shark LAPs. The Atlantic 
tunas longline permit renewal system was originally developed as a 
self-service, web-based electronic system that was administered by a 
non-NMFS contractor for the primary purpose of issuing open access 
permits. In contrast, swordfish and shark LAPs are issued and renewed 
by submitting paper applications to NMFS' Southeast Region permits 
office. A significant difference between the two permit systems is that 
the Atlantic tunas longline LAP cannot be held in ``no vessel'' status, 
meaning that the permit cannot be renewed without specifying a vessel. 
An Atlantic tunas longline permit holder must either move the permit to 
a replacement vessel

[[Page 38145]]

or forfeit the permit. Many vessel owners indicated that they were not 
aware of these options, or misunderstood them, and let their Atlantic 
tunas longline LAP expire because they no longer owned a vessel but 
thought they remained eligible to renew the permit.
    Another difference between the Atlantic tunas longline LAP and 
swordfish and shark LAPs is that the Atlantic tunas longline LAP does 
not have a unique permit number associated with it that stays unchanged 
if the permit is transferred to another vessel, whereas swordfish and 
shark permits do. Therefore, ``ownership'' of the Atlantic tunas 
longline LAP is more difficult to track over time because the permit 
number changes with each transfer of the permit to another vessel.
    This final rule amends the HMS regulations to remove the one-year 
renewal timeframe for Atlantic tunas longline LAPs. This modification 
will better reflect the operational capabilities of the Atlantic tunas 
longline permit renewal system and reduce the potential for future 
confusion. It will allow NMFS, upon receipt of a complete permit 
application, to reissue an Atlantic tunas longline LAP to the most 
recent permit holder of record even if the permit had not been renewed 
within one year of expiration, provided that the applicant has already 
been issued a swordfish LAP (other than a handgear LAP), a shark LAP, 
and all other current requirements for permit renewal are met. This 
final rule does not amend the permit renewal regulations for swordfish 
and shark LAPs which will continue to specify that only persons holding 
non-expired swordfish and shark LAPs in the preceding year are eligible 
to renew those permits. Also, the requirement to possess all three 
valid LAPs (swordfish incidental or directed; shark incidental or 
directed; and Atlantic tunas longline) in order to fish for tunas with 
PLL gear and to retain commercially-caught swordfish (other than with a 
swordfish handgear LAP) remains unchanged. Thus, the final management 
measures will not increase the number of Atlantic tunas longline LAPs 
issued to an amount higher than the number of swordfish LAPs 
(incidental or directed) that are currently issued or are eligible to 
be renewed.
    This action will help to ensure that an adequate number of 
complementary Atlantic tunas longline LAPs are available for swordfish 
and shark commercial LAP holders to fish legally for Atlantic swordfish 
and tunas with PLL gear. Consistent with the Magnuson-Stevens Act and 
ATCA, it will also help provide a reasonable opportunity for U.S. 
vessels to more fully harvest the domestic swordfish quota, which is 
derived from the recommendations of the International Commission for 
the Conservation of Atlantic Tunas (ICCAT). This final rule reinforces 
recent efforts by NMFS to ``revitalize'' the PLL fishery, recognizing 
that the North Atlantic stock is almost fully rebuilt (B = 0.99Bmsy) 
but domestic landings have been well below the U.S. swordfish quota in 
recent years. In doing so, this action could help the United States 
retain its historic swordfish quota allocation at ICCAT.

Atlantic Shark Dealer Workshop Requirements

    To improve the identification and reporting of shark species by 
dealers for accurate quota monitoring and stock assessments, existing 
HMS regulations at 50 CFR 635.8 require that Atlantic shark dealers 
attend an Atlantic Shark Identification Workshop and submit a copy of 
the workshop certificate in order to renew their permit. If a dealer 
attends and successfully completes a workshop, the dealer will receive 
a workshop certificate for each location listed on their Atlantic shark 
dealer permit. If the dealer chooses to send a proxy to a workshop, the 
existing regulations require them to send a proxy for each location 
listed on their Atlantic shark dealer permit. Under these regulations, 
Atlantic shark dealers may not renew their Atlantic shark dealer permit 
without submitting either a dealer or proxy certificate for each 
location listed on their Atlantic shark dealer permit. Additionally, 
Atlantic shark dealers may not act as the ``first-receivers'' of shark 
products at any location unless a valid workshop certificate is on the 
premises of each place of business listed on their shark dealer permit. 
As described in the final rule for Amendment 2 for the Management of 
Atlantic Shark Fisheries (73 FR 35778, June 24, 2008), ``first-
receiver'' means any entity, person, or company that takes, for 
commercial purposes (other than solely for transport), immediate 
possession of the fish, or any part of the fish, as the fish are 
offloaded from a fishing vessel of the United States, as defined under 
Sec.  600.10 of this chapter, whose owner or operator has been issued, 
or should be have been issued, a valid permit under this part.
    Since the implementation of these requirements, NMFS has learned 
that some shark dealers may not be acting as the first receiver of 
shark products at all of the locations listed on their permit. For 
example, a dealer may purchase red snapper at one location, and shark 
at another location. However, because the shark dealer's permit lists 
both locations as owned by the dealer, including the snapper-only site, 
the existing regulations require them to submit an Atlantic Shark 
Identification Workshop certificate (proxy or dealer) upon permit 
renewal for both the shark site and the snapper site, and to later 
possess the certificate at both sites. This is an impractical and 
unnecessary result. When NMFS recognized that the existing regulations 
required this practice, the agency decided to correct and amend the 
process.
    For technical and programmatic reasons, it is not feasible for NMFS 
to modify the permit database to specify only locations on the shark 
dealer permit that actually receive shark products if the dealer also 
has other locations where other species are received. To remedy this 
situation, the final rule amends the HMS regulations by specifying 
that, when applying for or renewing an Atlantic shark dealer permit, an 
applicant must submit an Atlantic Shark Identification Workshop 
certificate (dealer or proxy) for each place of business listed on the 
shark dealer permit which first receives Atlantic sharks by way of 
purchase, barter, or trade, rather than for each location listed on the 
shark dealer permit. This will eliminate the need for a shark dealer to 
send a proxy to a workshop to obtain a certificate for a location that 
does not actually receive Atlantic shark products. Similarly, the 
requirement to possess, and make available for inspection, an Atlantic 
Shark Identification Workshop certificate will only be required at 
locations listed on the dealer permit where sharks are first received 
rather than from each location listed on the shark dealer permit. 
Finally, this final rule requires that extensions of a dealer's 
business, such as trucks or other conveyances, must possess a copy of a 
valid dealer or proxy certificate issued to a place of business covered 
by the dealer permit. This will immediately identify trucks or other 
conveyances as extensions of a NMFS-certified place of business which 
is eligible to receive Atlantic sharks. With these minor amendments, 
the objective of improved identification and reporting of shark species 
is expected to continue, while impacts on dealers may be lessened.

Clarification of Buoy Gear Usage

    In this final rule, NMFS also makes a technical clarification in 
the ``gear operation and deployment restrictions'' section of the HMS 
regulations regarding which permit holders are authorized to utilize 
buoy gear. This

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technical clarification does not substantively change the buoy gear 
usage requirements. It clarifies that only vessels issued a valid 
directed or handgear swordfish LAP may possess and utilize buoy gear. 
This clarification addresses questions and comments received from 
constituents, and ensures consistency with existing HMS regulations at 
Sec.  635.71(e)(10) which already specify that only these permit 
holders may possess or utilize buoy gear.
    A description of the alternatives for this action was provided in 
the Classification section of the proposed rule (73 FR 19795, April 11, 
2008) and is not repeated here. Additional information can be found in 
the Final RIR/FRFA prepared for this rule and is available from NMFS 
(see ADDRESSES).
    The public comment period for the proposed rule (73 FR 19795, April 
11, 2008) was open from April 11, 2008, to May 12, 2008. During that 
time, NMFS conducted three public hearings in Gloucester, MA (May 1, 
2008), St. Petersburg, FL (May 6, 2008), and Silver Spring, MD (May 7, 
2008). In addition, the HMS Advisory Panel (HMS AP) received a 
presentation and was provided with an opportunity to comment on the 
proposed rule on April 16, 2008. The Agency received six written or 
electronic comment letters, and several verbal comments from the HMS AP 
and at public hearings. A summary of the major comments (26 total) 
received, along with NMFS' response, is provided below.

Response to Comments

    These comments and responses are divided into two major categories: 
those that discuss the renewal of Atlantic tunas longline LAPs (23 
comments) and those that discuss Atlantic shark dealer workshop 
requirements (3 comments).

Renewal of Atlantic Tunas Longline LAPs

    Comment 1: All longlines should be banned. It is time for NMFS to 
prohibit these forty mile longlines from being used in the ocean and 
killing everything in their path. The proposed rule is far too lenient.
    Response: The U.S. PLL fishery provides jobs and income for fishery 
participants, and wholesome food products for consumers. NMFS 
continually assesses the PLL fishery and, if necessary, implements 
management measures to ensure that bycatch and bycatch mortality of 
protected and nontarget species are minimized to the extent 
practicable. In addition, based upon the best scientific information 
available, the agency develops and implements management measures to 
prevent overfishing and rebuild overfished stocks. Some of these 
management measures include the mandatory use of circle hooks in the 
PLL fishery, bait restrictions, gear requirements, mandatory training 
at release and disentanglement workshops, mandatory release and 
disentanglement gear, time/area closures, mandatory vessel monitoring 
systems, logbook and reporting requirements, observer coverage, minimum 
size limits, catch limits, annual quotas, target catch requirements, 
limited access permits, and vessel upgrading restrictions. The 
implementation of these measures has resulted in a well-managed 
domestic fishery. This final rule is not expected to have significant 
adverse environmental impacts because the resultant number of 
authorized PLL vessels will not exceed the number of vessels that are 
currently issued, or are eligible to renew, swordfish directed and 
incidental permits. At most, 40 Atlantic tunas longline LAPs could be 
reissued as a result of this rule, but all of these permits have been 
issued before, since LAPs were first required in 1999.
    Comment 2: The Atlantic tunas longline LAP was established eight or 
nine years ago. Why is NMFS only finding out now that 40 former permit 
holders did not renew their permits by the required deadline?
    Response: The magnitude of this issue came to the forefront during 
implementation of revised vessel upgrading regulations for vessels 
which were concurrently issued, or eligible to renew, swordfish, shark 
and Atlantic tunas longline LAPs in August 2007. Prior to that time, 
NMFS recognized that some permit holders had failed to renew their 
Atlantic tunas LAP within one year of expiration, but the agency was 
not aware that many of these same permit holders had maintained their 
swordfish and shark LAPs through timely renewal. NMFS found that some 
permit holders had inadvertently let their Atlantic tunas longline LAP 
expire because they misunderstood the differences in the permit renewal 
process for swordfish/shark LAPs and Atlantic tunas longline LAPs (as 
discussed in detail in the proposed rule (73 FR 19795, April 11, 
2008)). NMFS also found that some swordfish and shark permit holders 
were not able to renew their Atlantic tunas longline LAP because they 
did not possess a vessel; the tuna permitting system cannot issue a 
permit without vessel information. For these reasons, the agency is 
amending the HMS regulations to be more reflective of the operational 
capabilities of the Atlantic tunas longline permit issuance system and 
to reduce confusion regarding the renewal of this permit.
    Comment 3: If I have an incidental swordfish permit and a shark 
permit, is NMFS going to issue me a tuna longline permit as a result of 
this rule?
    Response: Not necessarily. This final action only amends the 
regulations regarding the renewal of expired Atlantic tunas longline 
LAPs. Only the most recent permit holder of record will be eligible to 
renew that permit even if it has been expired for more than one year. 
The Atlantic tunas longline LAP remains a limited access permit. As 
stated in 50 CFR 635.4(d)(4), the permit may only be obtained through 
transfer from current owners. This means that the concurrent 
possession, or issuance, of swordfish and shark directed or incidental 
LAPs does not automatically entitle a person to an Atlantic tunas 
longline LAP. It must still be obtained through permit transfer.
    Comment 4: Will reissuing 40 Atlantic tunas longline LAPs create 
the complementary balance of permits that NMFS is hoping to achieve, or 
will the agency have to issue more permits? How many shark and 
swordfish boats are looking for Atlantic tunas longline LAPs?
    Response: There are approximately 40 vessels that have been issued, 
or are eligible to renew, swordfish and shark permits that need an 
Atlantic tunas longline LAP to complete the three-permit combination 
that is necessary to retain swordfish (other than with handgear) or to 
fish for tunas with PLL gear. As of August 6, 2007, there were 
approximately 288 directed and incidental swordfish permits, 542 
directed and incidental shark permits, and 268 Atlantic tunas longline 
LAPs that were issued or were eligible for renewal. Of these, 245 
vessels were concurrently issued, or were eligible to renew, all three 
permits. The availability of the Atlantic tunas longline LAP has been a 
limiting factor in the number of vessels that are eligible to retain 
swordfish or fish for HMS with PLL gear. Renewing approximately 40 
Atlantic tunas longline LAPs should help to complement the available 
number of swordfish permits. Because most of the 40 vessels affected by 
this final rule have already been issued swordfish and shark LAPs, the 
number of authorized PLL vessels could potentially increase from 
approximately 245 to 285. However, it is not known if every former 
permit holder will apply to renew the Atlantic tunas longline LAP, so 
the actual increase in the number of PLL vessels could be less.

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    Comment 5: How many inactive PLL vessels are there that have been 
issued the three necessary permits?
    Response: There are about 131 vessels out of 245 vessels authorized 
to fish with PLL gear that did not report any landings in the HMS 
logbook in 2006. These 131 vessels are considered to be currently 
inactive in the HMS fishery.
    Comment 6: I support the proposed rule and other actions to 
increase U.S. swordfish landings. The U.S. swordfish quota is going to 
be reduced at ICCAT. When the swordfish quota is reduced, it will 
adversely affect both recreational and commercial fishermen. There are 
people that cannot currently fish and contribute to catching the 
domestic swordfish quota because they do not possess the three 
necessary permits. There are many reasons why people did not renew 
their permits. Some people were laid up due to illness or vessel 
maintenance. There is no reason for these permits to be latent. They 
should be reissued and put back into circulation so that shark and 
swordfish permit holders can get back to landing product. The United 
States needs to have more boats on the water fishing, and the boats 
must have the proper permits to do that.
    Response: This final rule could potentially increase the number of 
vessels authorized to retain swordfish, and fish for tunas with PLL 
gear, to a level approximately equal to the number of vessels issued a 
swordfish LAP. However, it is not known if every former Atlantic tunas 
longline permit holder affected by this rule will apply to renew the 
permit, so the actual increase in permit numbers and fishing vessels 
may be less than 40. This rule will remove an administrative barrier to 
renewing the Atlantic tunas longline LAP, and provide an opportunity 
for some current swordfish and shark permit holders to reenter the PLL 
fishery. If they choose not to fish, these permit holders could renew 
their Atlantic tunas longline LAP to ``complete'' their HMS permit 
package and then transfer their permits to another vessel owner. In 
either case, more HMS three-permit combinations could become available 
for use in the PLL fishery as a result of this rule.
    Comment 7: The proposed action will not increase domestic swordfish 
landings enough to have any impact at ICCAT.
    Response: This final action is not likely to immediately increase 
domestic swordfish landings to a level where the United States will 
meet or exceed its domestic swordfish quota. However, it will reduce an 
administrative barrier to renewing the Atlantic tunas longline LAP, and 
provide an opportunity for some current permit holders with swordfish 
and shark LAPs to reenter the PLL fishery. It will help to reduce the 
rate of attrition in the HMS PLL fishery by increasing the overall 
number of available ``complete'' PLL permit packages. If all 40 vessel 
owners affected by this rule immediately obtain their Atlantic tunas 
longline LAP and begin fishing for swordfish, landings could 
significantly increase.
    Comment 8: Why doesn't the Atlantic tunas longline LAP have a ``no 
vessel'' status?
    Response: The Atlantic tunas longline LAP does not have a ``no 
vessel'' status because the permit issuance system was originally 
designed for open access permits, which do not need ``no vessel'' 
status, such as the General category tuna permit and the HMS Angling 
category permit. In order to renew a permit, the online system requires 
applicants to enter vessel information. After the permit is issued, the 
permit number remains associated with the vessel and its U.S. Coast 
Guard documentation or state registration number. This system works 
well for open access permits, which do not have a ``sunset'' 
requirement specifying that the permit must be renewed within one year 
of expiration. However, if an Atlantic tunas longline permit holder 
sells their vessel but legally retains the limited access permit, the 
permit cannot be renewed without entering vessel information. Problems 
with the ``sunset'' requirement have arisen when a legally-retained 
permit was not issued to a vessel within one year of expiration. This 
final rule will allow Atlantic tunas longline LAPs to be retained, and 
later renewed, by the most recent permit holder of record even if the 
permit has not been issued to a vessel for more than one year. In that 
regard, this final rule accomplishes the same objective as providing 
``no vessel'' status for Atlantic tunas longline LAPs.
    Comment 9: NMFS should get rid of ``no vessel'' permit status. 
Latent permits have no effect on increasing swordfish tonnage.
    Response: NMFS believes it is important for LAP holders to have the 
ability to retain their permit(s) without possessing a vessel. It 
provides flexibility to permit holders who originally qualified for an 
LAP and it facilitates permit transferability. There are many 
circumstances where a permit holder might not own a vessel, might not 
be able to fish, or might choose not to fish. For example their vessel 
may have sunk, been sold, or fishery conditions might preclude 
participation. Providing LAP holders with the ability to retain their 
permits without owning a vessel provides time for them to find a 
suitable replacement vessel, or time to make necessary business 
decisions. Nevertheless, in a future rulemaking, the Agency may 
consider alternatives to address latent fishing effort.
    Comment 10: If a legitimate fisherman made a mistake in not 
renewing their Atlantic tunas longline LAP, they should be allowed to 
obtain a new permit. To verify this, NMFS should put a specific 
timeframe or qualification criteria on the 40 vessels with expired 
permits. In order to obtain a new permit, they must have fished within 
a certain period of time. If they did not fish within that timeframe, 
then they should not be reissued the permit. Otherwise, the proposed 
rule opens a Pandora's box.
    Response: The establishment of restrictive qualification criteria 
to become eligible for newly reissued permits runs counter to the 
primary intent of this rulemaking, which is to help ensure that the 
number of available Atlantic tunas longline LAPs is sufficient to match 
the number of available swordfish and shark LAPs. There are 
restrictions associated with this final rule, however. NMFS will 
reissue Atlantic tunas longline LAPs that have been expired for more 
than one year only upon receipt of a complete permit renewal 
application from the most recent permit holder of record, provided that 
they have also been issued valid swordfish and shark LAPs and all other 
permit renewal requirements are met. Former permit holders must apply 
for the Atlantic tunas longline LAP, as NMFS will not automatically 
reissue the permit to all former permit holders. This action will not 
increase the number of PLL vessels above the number of vessels that are 
currently issued, or eligible to renew, swordfish directed and 
incidental permits. At most, approximately 40 permits could be reissued 
as a result of this rule but all of these permits have been issued 
before, since LAPs were first implemented in 1999. In a future 
rulemaking, the Agency may consider alternatives to address latent 
fishing effort.
    Comment 11: I support the preferred alternative which would remove 
the one year renewal timeframe on Atlantic tunas longline LAPs and 
allow the agency to reissue this permit to the most recent permit 
holder of record. This would allow me to renew my permit and make my 
incidental swordfish permit valid again. It provides an opportunity for 
me to retain the incidental swordfish possession limit that may be 
caught while fishing for Illex squid. This is a significant benefit

[[Page 38148]]

to my business and it will not have a negative impact on the swordfish 
stock. There are between 50 - 70 LAPs issued for Illex squid, and about 
20 active Illex squid vessels. Four to five of these vessel owners 
would seek to renew their expired Atlantic tunas longline LAP.
    Response: NMFS recognizes that some Illex squid trawl vessel owners 
indicated that they misunderstood the requirement which specifies that, 
in order to retain incidentally-caught swordfish, it is necessary to be 
issued an Atlantic tunas longline LAP, a shark LAP, and a swordfish LAP 
(other than handgear). This final rule will allow some squid trawl 
vessel owners to renew their expired Atlantic tunas longline LAP, 
thereby allowing them to retain incidentally-caught swordfish, reduce 
or eliminate regulatory swordfish discards, and obtain economic 
benefits.
    Comment 12: NMFS should consider allowing squid trawlers to obtain 
an incidental swordfish LAP without requiring them to also obtain a 
corresponding Atlantic tunas longline LAP and a shark LAP. These 
vessels fish in approximately 150 - 200 fathoms on the edge of the 
continental shelf and rarely, if ever, catch tunas or sharks. They do 
not direct fishing effort on swordfish because it is unfeasible. This 
modification would allow only for the retention of incidentally-caught 
swordfish.
    Response: This comment is beyond the scope of this rulemaking, 
however NMFS may consider the recommendation in a future rulemaking.
    Comment 13: I am concerned about the language which requires that 
the swordfish and shark LAPs must have ``been maintained through timely 
renewal'' in order to be eligible for a reissued Atlantic tunas 
longline LAP. My vessel lost its Atlantic tunas longline LAP because of 
non-renewal. I then transferred its swordfish and shark permits to 
another vessel. If the swordfish and shark permits are transferred back 
to the original vessel (the one that lost its tuna permit), will that 
vessel still be eligible for a reissued Atlantic tunas longline LAP as 
a result of this rule?
    Response: To clarify, upon receipt of a complete permit renewal 
application, NMFS will reissue Atlantic tunas longline LAPs that have 
been expired for more than one year to the most recent permit holder of 
record, but only if the vessel has also been issued both a shark LAP 
and a swordfish LAP (other than handgear), and all other requirements 
for permit renewal are met. Because the shark and swordfish LAPs must 
already be issued, those permits would have been maintained through 
timely renewal. In the situation described in this comment, the vessel 
would be eligible for a newly reissued Atlantic tunas longline LAP if 
it was previously issued the tuna permit, and was currently issued both 
swordfish and shark LAPs, regardless of whether those swordfish and 
shark LAPs were transferred from another vessel.
    Comment 14: NMFS should require that permit recipients have a boat 
as a qualification criterion before reissuing a new Atlantic tunas 
longline LAP. If a fisherman invests in building or buying a boat, it 
demonstrates their commitment to the fishery and they should be 
reissued the permit. This requirement would also prevent permits from 
being sold from one area to another area.
    Response: Under this final rule, the eligibility to be issued an 
Atlantic tunas longline LAP will not be dependent upon possessing a 
vessel. The most recent permit holder of record for an Atlantic tunas 
longline LAP will be eligible to renew that permit with no ``sunset'' 
date. However, the permit cannot actually be reissued until the most 
recent permit holder of record possesses a vessel for which the permit 
can be issued. NMFS believes that the establishment of more restrictive 
qualification criteria, such as owning a vessel to become eligible for 
a newly reissued permit, would run counter to the intent of this 
rulemaking which is to ensure that the available number of Atlantic 
tunas longline LAPs is sufficient to match the number of available 
swordfish and shark LAPs.
    Comment 15: NMFS should not require that newly reissued permits be 
linked to a vessel. Vessels can sink or be taken out of service for 
many reasons. Therefore, people need to have the flexibility to keep 
their permits separate from vessels so that the permit can be used 
later. Some people might not be able to get back into the fishery 
because they are sick or incapacitated. However, they should be allowed 
to keep their permit in ``no vessel'' status and to sell it later so 
that it can actually be used to fish.
    Response: As described above in the response to Comment 14, it is 
necessary for a person to possess a vessel in order to be issued, or 
reissued, an Atlantic tunas longline LAP. This is a function of the 
permit renewal system. However, the eligibility to be issued an 
Atlantic tunas longline LAP will not be dependent upon possessing a 
vessel. Therefore, if a person was previously issued an Atlantic tunas 
longline LAP and they remain the most recent permit holder of record, 
they would be eligible to renew the permit with no ``sunset'' date, but 
the permit could not actually be issued until there is a vessel to 
which the permit may be issued. They would not lose their eligibility 
to renew their permit if they do not have a vessel, or if they become 
sick or incapacitated.
    Comment 16: I oppose the proposed rule. The proposed regulations 
will allow people who didn't follow the law regarding permit renewals 
to obtain an Atlantic tunas longline LAP. Some fishermen paid a lot of 
money to buy that permit. The proposed rule would allow people who are 
reissued the permit to obtain an economic benefit. Why is NMFS 
rewarding these 40 individuals? This rule makes a difference to people 
who had to buy a permit for a lot of money. The 40 affected individuals 
have not been fishing. They parked their permit, and now they will be 
able to renew it. NMFS should be more forthright about why it is 
allowing these people to renew their permit if it has been expired for 
more than one year.
    Response: NMFS is implementing this final rule primarily to ensure 
that an adequate number of Atlantic tunas longline LAPs are available 
to match the available number of swordfish and shark LAPs because all 
three permits are needed to retain swordfish (other than with the 
swordfish handgear LAP) and to fish for tunas with PLL gear. This rule 
is also being implemented so that the HMS regulations better reflect 
the operational constraints associated with the Atlantic tunas longline 
permit issuance system. For example, because the tuna permit issuance 
system lacks a ``no vessel'' status, some people without a vessel were 
unable to renew their Atlantic tunas longline LAP within one year and 
they lost their eligibility for the permit. Also, some squid trawl 
vessel owners issued incidental swordfish permits indicated that they 
misunderstood the requirement, which specifies that they must also be 
issued an Atlantic tunas longline LAP and a shark LAP in order to 
retain swordfish. These vessel owners inadvertently failed to renew 
their tuna permit within one year of expiration, lost their 
eligibility, and have since had to discard incidentally-caught 
swordfish. NMFS is aware that this rule could potentially provide an 
economic benefit to former permit holders who are reissued the permit. 
However, all of the individuals affected by this rule originally 
qualified for the permit, or obtained it through transfer. NMFS will 
not be issuing new permits to everyone who submits an application. The 
Atlantic tunas longline permit remains a limited access permit. Unless 
a person is the most recent

[[Page 38149]]

Atlantic tunas longline permit holder of record, the permit can still 
only be obtained through transfer.
    Comment 17: I oppose the proposed rule. It would reward individuals 
that have not helped the swordfish fishery at all. Their permits are 
being carried solely as an investment. Anyone who owns a permit knows 
that people are looking to buy permits. This proposed rule offers an 
opportunity for these individuals to sell their newly reissued permits. 
Many former permit holders will sell the Atlantic tunas longline LAP 
for economic benefit to south Florida vessel owners that want to fish 
with buoy gear.
    Response: The final rule will allow former Atlantic tunas longline 
permit holders to renew this permit if it has been expired for more 
than one year. They will then become legally eligible to retain 
swordfish, provided that they have also been issued a shark and 
swordfish LAP (other than handgear) and are compliant with all other 
regulations. Because these former permit holders were previously not 
allowed to renew their expired Atlantic tunas longline LAPs, they were 
not able to retain swordfish or ``help'' the swordfish fishery. It is 
unlikely that these former permit holders allowed their Atlantic tunas 
longline permit to expire for more than one year if they were holding 
onto it for investment purposes, as the permits would no longer be 
renewable. Many former permit holders have indicated that they 
misunderstood the requirement which specifies that an Atlantic tunas 
longline LAP is necessary to retain swordfish (except with a swordfish 
handgear LAP), or that they were not able to be issued a tunas longline 
LAP because they did not possess a vessel, or were confused by the 
permit renewal procedures. Under this final rule, if a person whose 
Atlantic tunas longline LAP has been expired for more than one year 
possesses a vessel, applies for the permit, has been issued both 
swordfish and shark LAPs (other than swordfish handgear), and meets all 
other permit renewal requirements, they will be reissued a new permit. 
The permit could then be used to fish, or it could be sold and 
transferred. Transferability is an important feature of all HMS LAPs. 
If some of the newly reissued permits are transferred to people who are 
then able to fish for swordfish as a result of this final rule, it 
would be beneficial to the United States for achieving the domestic 
swordfish quota. It is possible that some transferred permits could be 
used to participate in the buoy gear fishery in south Florida. The buoy 
gear fishery is currently authorized and managed under the Consolidated 
HMS Fishery Management Plan (Consolidated HMS FMP). NMFS monitors, and 
will continue to monitor, the buoy gear fishery to determine if changes 
to the regulations governing this fishery are warranted.
    Comment 18: The United States will not catch its swordfish quota if 
the newly reissued permits are not actually used to catch fish. The 
final rule should contain a ``sunset clause'' which specifies that if a 
newly reissued permit is not used to fish by a certain date, then it 
would be revoked. The United States needs to put boats on the water. 
Therefore, the recipients must either use the permit or lose the 
permit.
    Response: NMFS is not imposing any additional restrictions, such as 
a ``use or lose'' date, upon newly reissued Atlantic tunas longline 
LAPs. The establishment of restrictive criteria to retain the permit, 
or to retain eligibility for the permit, would run counter to the 
intent of this rulemaking, which is primarily to ensure that the number 
of available Atlantic tunas longline LAPs is sufficient to match the 
number of available swordfish and shark LAPs. There are many instances 
when a person may not be able to fish. Requiring a person to fish with 
a newly reissued permit within a certain period of time, or else risk 
losing the permit, could compromise their safety at sea and would limit 
their business's planning and decision-making flexibility. As stated in 
the responses to comments 9 and 10, the Agency may consider 
alternatives to address latent fishing effort in a future rulemaking.
    Comment 19: NMFS should not allow any newly reissued permits to be 
sold or transferred.
    Response: NMFS believes that the regulations governing the sale and 
transfer of all HMS LAPs should be consistent for administrative 
purposes and to minimize confusion, especially because swordfish, 
shark, and Atlantic tunas longline LAPs are often transferred together 
as a three-permit package. It would be confusing for the public and 
difficult for NMFS to administer if only certain Atlantic tunas 
longline LAPs were transferrable, while others were not. Furthermore, 
permit transferability is an important feature of HMS LAPs because it 
allows permit buyers and sellers to determine how permits are utilized, 
rather than the federal government. Finally, the establishment of 
restrictive criteria applying only to the transfer of certain Atlantic 
tunas longline LAPs would run counter to the intent of this rulemaking, 
which is primarily to ensure that the number of available Atlantic 
tunas longline LAPs is sufficient to match the number of available 
swordfish and shark LAPs.
    Comment 20: NMFS should create a ``pool'' of unused or revoked 
permits that could be issued to people who want to fish. There needs to 
be more HMS permits available so that people who want to buy a boat and 
fish can more easily obtain a permit.
    Response: NMFS does not currently intend to revoke latent HMS LAPs, 
or to serve as a broker for revoked or latent permits. As discussed in 
the response to Comment 5, there are currently a large number of latent 
or inactive permits in the HMS PLL fishery. All of these permits are 
transferrable, so NMFS encourages anyone interested in participating in 
an HMS limited access fishery to make the appropriate contacts and 
obtain the needed permits.
    Comment 21: NMFS should allow for the leasing and chartering of HMS 
permits to foreign vessels. This would allow the newly reissued 
Atlantic tunas longline LAPs permits to be used for fishing on the high 
seas.
    Response: This comment is beyond the scope of this rulemaking, 
however NMFS may consider the recommendation in a future rulemaking.
    Comment 22: I support the proposed action, but it should only be 
considered a first step. Is this the entire extent of the permit 
revisions that NMFS is considering? NMFS should allow all lapsed 
swordfish, shark, and tuna permits to be reinstated. The United States 
needs more boats on the water catching fish. Many people lost their 
permits either through attrition, or because they were confused by the 
renewal process. NMFS should address the entire issue by reissuing all 
expired shark and swordfish permits. Does NMFS plan to reinstate other 
lapsed HMS permits?
    Response: NMFS does not presently intend to reinstate other lapsed 
HMS permits. This final rule only affects lapsed Atlantic tunas 
longline LAPs because the situation regarding these permits is unique. 
The operational constraints of the online renewal system for this 
permit prevented some otherwise qualified permit holders from renewing 
their permit because they did not own a vessel. Also, several squid 
trawl vessel owners indicated that they misunderstood they needed an 
Atlantic tunas longline LAP and a shark LAP to retain incidentally-
caught swordfish, even though they were issued an incidental swordfish 
permit. Finally, the renewal reminder and permit application process 
for Atlantic tunas longline LAPs is different from other HMS LAPs. NMFS 
recognizes these

[[Page 38150]]

differences and realizes that some former permit holders may not have 
been able to renew their permit, or were confused by the regulations or 
renewal process. This final rule provides an immediate remedy to these 
readily identifiable problems. NMFS may also consider other, more 
comprehensive, permit-related issues in a future rulemaking.
    Comment 23: I oppose the proposed action. There are already enough 
HMS permits available now.
    Response: There are many latent HMS permits, including 
approximately 131 complete three-permit PLL ``packages.'' However, some 
people are issued only one or two of the three required permits needed 
to retain swordfish (other than with handgear), or to fish for tunas 
with PLL gear. If these people were to complete their three-permit 
package by obtaining an Atlantic tunas longline LAP through transfer, 
the transferor could then have an incomplete permit package. This is 
the permit imbalance that NMFS is seeking to address. This final rule 
is less focused on reissuing more Atlantic tunas longline LAPs, and 
more focused on ensuring that currently issued swordfish permits are 
valid (because they are held in conjunction with the other two 
permits). It will help to slow the rate of attrition in the PLL fishery 
without increasing the number of PLL vessels above the number of permit 
holders issued swordfish LAPs.

Shark Dealer Workshops

    Comment 24: Are shark dealer permits issued to individuals or to 
entities?
    Response: Shark dealer permits may be issued to both individuals 
and corporate entities.
    Comment 25: Does the final rule change the HMS regulations at Sec.  
635.28(b)(3) which state that, when the fishery for a shark species 
group in a particular region is closed, shark dealers in that region 
may not purchase or receive sharks of that species group from a vessel 
issued an Atlantic shark LAP?
    Response: No. This final rule primarily modifies Atlantic Shark 
Identification Workshop requirements at Sec.  635.8(b) for Atlantic 
shark dealers that have more than one place of business listed on their 
shark dealer permit. Also, this final rule implements a requirement 
which specifies that trucks or other conveyances of a dealer's place of 
business must possess a copy of a valid Atlantic Shark Identification 
Workshop certificate (dealer or proxy) issued to a place of business 
covered by the dealer permit.
    Comment 26: The Atlantic Shark Identification Workshops use shark 
``logs'' and the second dorsal and anal fins to identify sharks. NMFS 
should allow the workshop instructor to have access to prohibited 
species, different life history stages, and different product forms to 
further improve dealer identification skills.
    Response: NMFS will examine the feasibility and necessity of 
providing these items at future workshops.

Changes from the Proposed Rule

    There are no changes from the proposed rule.

Classification

    The Assistant Administrator, NMFS, has determined that this final 
rule is necessary for the conservation and management of the HMS 
fishery and that it is consistent with the Magnuson-Stevens Fishery 
Conservation and Management Act and other applicable laws.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    A Final Regulatory Flexibility Analysis (FRFA) was prepared. The 
FRFA incorporates the IRFA, a summary of the significant issues raised 
by the public comments in response to the IRFA, NMFS' responses to 
those comments, and a summary of the analyses. The full FRFA is 
available from NMFS (see ADDRESSES). A summary of the information 
presented in the FRFA follows.
    Section 604(a)(1) of the Regulatory Flexibility Act (RFA) requires 
the Agency to state the objective and need for the rule. As stated in 
the proposed rule, the objective of this final rule regarding the 
renewal of expired Atlantic tunas longline LAPs is to help ensure that 
an adequate number of complementary Atlantic tunas longline LAPs are 
available for swordfish and shark LAP holders to fish legally for 
Atlantic swordfish and tunas with PLL gear. Consistent with the 
Magnuson-Stevens Act and ATCA, this action is also intended to help 
provide a reasonable opportunity for U.S. vessels to harvest quota 
allocations recommended by ICCAT, in recognition of the improved stock 
status of North Atlantic swordfish (B = 0.99Bmsy).
    The amendment regarding attendance requirements at Atlantic Shark 
Identification Workshops is necessary because some shark dealers do not 
receive shark products at all of the locations listed on their permit, 
thus making it unnecessary to require workshop certification for those 
locations where sharks are not received. For technical and 
administrative reasons, it is not currently feasible for NMFS to list 
only locations on the shark dealer permit where sharks are first 
received, if a dealer also has other locations where other species are 
received. This final rule requires dealers to submit an Atlantic Shark 
Identification Workshop certificate (dealer or proxy) for each place of 
business listed on the shark dealer permit which first receives 
Atlantic sharks by way of purchase, barter, or trade, rather than from 
each location listed on their dealer permit. This will eliminate the 
need for a dealer to send a proxy to a workshop to obtain a certificate 
for a business location that does not first receive Atlantic shark 
products for the sole purpose of renewing their Atlantic shark dealer 
permit. The requirement to possess, and make available for inspection, 
an Atlantic Shark Identification Workshop certificate is similarly only 
required at locations listed on the dealer permit where sharks are 
first received. Additionally, this final rule requires that extensions 
of a dealer's business, such as trucks or other conveyances, must 
possess a copy of a valid dealer or proxy certificate issued to a place 
of business covered by the dealer permit. This will allow trucks or 
other conveyances of a NMFS-certified place of business to be 
immediately identified as being eligible to first receive Atlantic 
sharks.
    Section 604(a)(2) of the RFA requires the Agency to summarize 
significant issues raised by the public comments in response to the 
IRFA, summarize the assessment of the Agency of such issues, and state 
any changes made in the rule as a result of such comments. NMFS 
received several comments on the proposed rule during the public 
comment period. A summary of the comments and the Agency's responses 
are included in the preamble of this final rule. NMFS did not receive 
any comments specific to the IRFA, but did receive a limited number of 
comments related to economic issues and concerns. These comments are 
responded to with the other comments (see Comments 11, 16, and 17). The 
comments on economic concerns are also summarized here.
    A comment was received indicating that the preferred alternative 
for the renewal of Atlantic tunas longline LAPs would allow some Illex 
squid trawlers to renew their Atlantic tunas longline permit again, 
thus making their incidental swordfish permit valid. This would allow 
them to retain incidentally-caught swordfish and provide a significant 
economic benefit to their

[[Page 38151]]

business. NMFS concurs with this assessment that the final action could 
provide an economic benefit to some former permit holders, and reduce 
or eliminate swordfish regulatory discards by allowing squid trawlers 
to retain incidentally-caught swordfish.
    Another commenter stated that the preferred alternative would allow 
people who did not follow the regulations regarding permit renewal to 
obtain a new Atlantic tunas longline LAP, whereas some fishermen had to 
pay for the permit. In response, NMFS stated that the intent of the 
final rule is to help ensure that the number of available Atlantic 
tunas longline LAPs is sufficient to match the number of available 
swordfish and shark LAPs. Furthermore, all of the individuals affected 
by this rule either originally qualified for an Atlantic tunas longline 
LAP, or obtained it through transfer. NMFS will not be issuing new 
permits to everyone who submits an application. The Atlantic tunas 
longline permit remains a limited access permit. Unless a person is the 
most recent Atlantic tunas longline permit holder of record, the permit 
can only be obtained through transfer.
    Finally, NMFS received a comment stating that the preferred 
alternative provides an opportunity for individuals to sell their newly 
reissued Atlantic tunas longline LAP for their own economic benefit, 
possibly to south Florida vessel owners that want to fish with buoy 
gear. In response, NMFS believes it would be beneficial for achieving 
the domestic north Atlantic swordfish quota if some people who want to 
fish for swordfish are able to do so legally. Some of the transferred 
permits could be used to participate in the buoy gear fishery in south 
Florida. NMFS will continue to monitor the buoy gear fishery to 
determine if additional regulations are needed.
    No changes to the final rule were made as a result of these 
comments.
    Section 604(a)(3) of the RFA requires the Agency to describe and 
estimate the number of small entities to which the final rule will 
apply. NMFS considers all commercial permit holders to be small 
entities as reflected in the Small Business Administration's (SBA) size 
standards for defining a small business entity (gross receipts less 
than $4.0 million). The final action to modify permit renewal 
requirements for Atlantic tunas longline LAPs would most immediately 
impact approximately 40 vessel owners that are the most recent permit 
holders of record, but are not eligible to renew that permit because it 
has been expired for more than one year. Potentially, 245 vessel owners 
that are concurrently issued Atlantic tunas longline, swordfish, and 
shark LAPs could be affected by this action if, in the future, they 
fail to renew their Atlantic tunas longline LAP within one year of 
expiration.
    Based upon information obtained from the Southeast Regional Office 
permits shop, as of May 19, 2008, NMFS had issued 142 Atlantic shark 
dealer permits (not counting Atlantic shark dealers located in Pacific 
states (5 in CA, and 2 in HI)). Of these, 41 individual dealers had 
multiple locations (ranging from two to eight locations) listed on 
their permit. Eighty-four of these shark dealers had been issued a 
workshop certificate for at least one location, and 58 shark dealers 
had not been issued any workshop certificates for any locations. 
Approximately 8 of the 41 dealers with multiple locations had been 
issued at least one certificate, but not certificates for all of the 
locations listed on their permit. Thus, under the current regulations, 
these 8 dealers would not be eligible to renew their shark dealer 
permit. The 8 Atlantic shark dealers who have not been issued proxy 
certificates for all of their locations are most immediately affected 
by this final rule because, as a result of this rule, they would be 
eligible to renew their shark dealer permit by submitting workshop 
certificates only for locations that actually receive shark products. 
Potentially, any of the 41 Atlantic shark dealers with multiple 
locations listed on their permit could also be impacted by this action. 
All of the aforementioned businesses are considered small business 
entities according to the Small Business Administration's standard for 
defining a small entity.
    Section 604(a)(4) of the RFA requires NMFS to describe the 
projected reporting, recordkeeping, and other compliance requirements 
of the final rule, including an estimate of the classes of small 
entities that will be subject to the requirements of the report or 
record. This final rule does not contain any new reporting, 
recordkeeping, or other compliance requirements that will require new 
Paperwork Reduction Act filings. Atlantic shark dealers will need to 
comply with a new requirement to possess a copy of their Atlantic Shark 
Identification Workshop certificate (dealer or proxy) in their trucks 
or other conveyances which serve as extensions of a dealer's place of 
business. This will help to facilitate the identification of trucks or 
other conveyances as extensions of a NMFS-certified place of business 
which is eligible to receive Atlantic sharks.
    Section 604(a)(5) of the RFA requires the Agency to describe the 
steps taken to minimize the significant economic impact on small 
entities consistent with the stated objectives of the applicable 
statutes, including a statement of the factual, policy, and legal 
reasons for selecting the alternative adopted in the final rule and why 
each one of the other significant alternatives to the rule considered 
by the agency which affect the impact on small entities was rejected. 
Additionally, the RFA (5 U.S.C. 603(c)(1) through (4)) lists four 
general categories of ``significant'' alternatives that would assist an 
agency in the development of significant alternatives. These categories 
of alternatives are:
    1. Establishment of differing compliance or reporting requirements 
or timetables that take into account the resources available to small 
entities;
    2. Clarification, consolidation, or simplification of compliance 
and reporting requirements under the rule for such small entities;
    3. Use of performance rather than design standards; and
    4. Exemptions from coverage of the rule for small entities.
    As noted earlier, NMFS considers all commercial permit holders to 
be small entities. In order to meet the objectives of this final rule, 
consistent with the Magnuson-Stevens Act, ATCA, and the ESA, NMFS 
cannot exempt small entities or change the compliance requirements only 
for small entities. Thus, there are no alternatives that fall under the 
first and fourth categories described above.
    With regards to category two, none of the alternatives considered 
would result in additional reporting requirements. The selected 
alternative for Atlantic Shark Identification Workshops requires shark 
dealers to possess a copy of their workshop certificate (dealer or 
proxy) in trucks or other conveyances which serve as extensions of a 
dealers' place of business. The only compliance requirement involves 
making a photocopy of the workshop certificate, and possessing that 
copy inside dealer's trucks or conveyances. This requirement will 
facilitate the identification of vehicles which serve as extensions of 
a NMFS-certified place of business that is eligible to receive Atlantic 
sharks.
    Category three emphasizes the use of performance standards rather 
than design standards in the development of alternatives. None of the 
alternatives require compliance with standards, so there are no 
alternatives that fall under this category.
    NMFS considered two alternatives to address the renewal of Atlantic 
tunas

[[Page 38152]]

longline LAPs that have been expired for more than one year, and two 
alternatives to address Atlantic Shark Identification Workshop 
attendance requirements. As described below, NMFS has provided 
justification for the selection of the preferred alternatives to 
achieve the desired objectives of this rulemaking.
    Alternative 1 for the renewal of Atlantic tunas longline LAPs 
(alternative 2.1.1 in the FRFA) is the no action, or status quo, 
alternative. Current HMS regulations at 50 CFR 635.4(m)(2) specify that 
only persons holding a non-expired Atlantic tunas longline LAP in the 
preceding year are eligible to renew that permit. Under alternative 1, 
there would be no change in the existing regulations and, as such, no 
change in the current baseline economic impacts. However, the situation 
regarding the renewal of Atlantic tunas longline LAPs is unique. Until 
September 2007, the procedures for renewing Atlantic tunas longline 
LAPs were implemented differently than for swordfish and shark LAPs. 
Since September 2007, the permit renewal regulations have been 
administered similarly. Thus, the no action alternative would continue 
any existing economic impacts, but those impacts have only been in 
existence since September 2007.
    The no action alternative was not selected because it has the 
largest associated adverse economic impacts. Without an Atlantic tunas 
longline LAP, a permit holder is prohibited from fishing for tunas with 
PLL gear and from retaining swordfish, even if the vessel has been 
issued a directed or incidental swordfish permit. As many as 40 
commercial fishing vessels that previously qualified for LAPs to 
participate in the PLL fishery would continue to be prohibited from 
participating in the fishery, harvesting the U.S. swordfish quota, and 
creating jobs. Thus a failure to take action would prevent the 
realization of economic gains associated with increased swordfish 
fishing.
    Under the selected alternative (preferred alternative 2.1.2 in the 
FRFA), NMFS would remove the one-year renewal timeframe for Atlantic 
tunas longline LAPs. This would allow the Agency to reissue the permit 
to the most recent permit holder of record, even if the Atlantic tunas 
longline LAP had not been renewed within one year of expiration, 
provided that they were issued swordfish and shark LAPs and all other 
requirements for permit renewal were met. The requirement to possess 
swordfish and shark LAPs in order to obtain an Atlantic tunas longline 
LAP would remain in effect. Also, current regulations which specify 
that only persons holding non-expired swordfish and shark LAPs in the 
preceding year are eligible to renew those permits would remain in 
effect.
    Relative to the no action alternative, removing the one-year 
renewal timeframe for Atlantic tunas longline LAPs is projected to 
potentially increase net and gross revenues for approximately 40 vessel 
owners who are otherwise qualified to fish for swordfish and tunas with 
PLL gear, except that they are currently ineligible to renew their 
Atlantic tunas longline LAP. Overall fleet-wide gross economic benefits 
could potentially increase as much as $7,842,280 under this 
alternative, relative to the baseline. Also, an overall fleet-wide 
increase in net revenues (profits) of approximately $200,000 to 
$721,839 could occur, distributed among the 40 vessels potentially 
impacted by this alternative. Under this alternative, each individual 
vessel owner could see an increase in annual net revenues ranging from 
$0 to potentially over $100,000, depending upon the profitability of 
their business.
    Another important benefit associated with the selected alternative 
is that it could help to maintain the domestic swordfish and tuna PLL 
fishery at historical levels by allowing 35 - 40 vessels to participate 
in the fishery that, since September 2007, have not been permitted to 
do so. All of the potentially affected vessels/permit holders 
originally qualified for the longline fishery in 1999, or received the 
necessary permits through transfer. Thus, relative to August 2007 and 
years prior, there would be no change in historical fishing practices, 
fishing effort, or economic impact. However, relative to September 2007 
and beyond, potential economic benefits to the affected permit holders 
would result. The selected alternative could also help the United 
States retain its historic swordfish quota allocation at ICCAT and 
sustain employment opportunities in the domestic PLL fleet. Maintaining 
a viable domestic PLL fishery is important because it could help to 
demonstrate that a well-managed, environmentally-sound fishery can also 
be profitable. This could eventually provide an incentive for other 
nations to adopt similar management measures that are currently 
required of the U.S. PLL fleet such as circle hooks, careful release 
gears, and other measures described in the response to Comment 1 above.
    A related potential impact associated with both alternatives is 
that changes to the value of an Atlantic tunas longline LAP could occur 
by changing the supply of available permits. The no action alternative 
would likely reduce the supply of available permits over time, thereby 
increasing the value of the permit. The selected alternative could 
initially increase the supply relative to the period since September 
2007, and thereby reduce the value. These impacts would be either 
positive or negative for small business entities, depending upon 
whether the Atlantic tunas longline LAP was being bought or sold.
    There are no other significant alternatives for the renewal of 
Atlantic tunas longline permits, except for the two aforementioned 
alternatives. The selected alternative achieves the objectives of this 
rulemaking, provides benefits to small entities, and has few associated 
impacts because the regulatory changes will be more representative of 
the actual operational capabilities of the Atlantic tunas longline LAP 
renewal system. The selected alternative will help to ensure that an 
adequate number of Atlantic tunas longline LAPs are available to match 
the available number of swordfish and shark LAPs, which is important 
because all three permits are needed to retain swordfish (other than 
with the swordfish handgear LAP) and to fish for tunas with PLL gear.
    Alternative 1 for attendance requirements at Atlantic Shark 
Identification Workshops (alternative 2.2.1 in the FRFA) is the no 
action alternative. All dealers intending to renew their Atlantic shark 
dealer permit would continue to be required to become certified at an 
Atlantic Shark Identification Workshop, or to have their proxies 
certified. Dealers with multiple locations listed on their permit would 
receive certificates for each location listed on their permit. Dealers 
opting not to become certified and to send a proxy would continue to be 
required to send a proxy for each location listed on their Atlantic 
shark dealer permit. Atlantic shark dealers would not be allowed to 
renew their permit without submitting either a dealer or proxy 
certificate for each location listed on their Atlantic shark dealer 
permit. Additionally, Atlantic shark dealers could not receive shark 
products at a location that does not have a valid workshop certificate 
for that address on the premises.
    There are approximately 41 Atlantic shark dealers with more than 
one location listed on their permit. These dealers have the choice of 
becoming certified themselves, or sending a proxy to the workshops for 
each location listed on a permit. As described in the Consolidated HMS 
FMP and its final

[[Page 38153]]

rule (71 FR 58058, October 2, 2006), on an individual basis the costs 
incurred by dealers and/or proxies are those related to travel and the 
time required to attend the workshops, which result in out of pocket 
expenses and lost opportunity costs. Travel costs to attend these 
workshops vary, depending upon the distance that must be traveled. 
Daily opportunity costs for dealers are not currently known. Therefore, 
it is not possible to precisely quantify the costs associated with the 
no action alternative. At a minimum, the costs for a dealer attending a 
workshop include travel expenses and at least one day of lost 
opportunity costs. At a maximum, for dealers opting to send proxies for 
each location listed on their permit, the costs could include travel 
expenses for several proxies and several days of lost opportunity 
costs.
    The selected alternative for Atlantic Shark Identification Workshop 
attendance requirements (preferred alternative 2.2.2 in the FRFA) 
specifies that, upon permit renewal, a dealer must submit an Atlantic 
Shark Identification Workshop certificate (dealer or proxy) for each 
place of business listed on the dealer permit which first receives 
Atlantic sharks by way of purchase, barter, or trade, rather than from 
each location listed on their dealer permit. The requirement to 
possess, and make available for inspection, an Atlantic Shark 
Identification Workshop certificate is similarly only required at 
locations listed on the dealer permit where sharks are first received. 
This eliminates the need for a dealer to send a proxy to a workshop to 
obtain a certificate for a business location that does not first 
receive Atlantic shark products.
    As mentioned above, there are currently 41 shark dealers with 
multiple locations listed on their permit which could be impacted by 
the proposed action. Of these, 8 Atlantic shark dealers have not 
currently been issued Atlantic Shark Identification Workshop 
certificates for all of the locations listed on their permit.
    NMFS estimates that the total costs (travel costs and opportunity 
costs) associated with the selected alternative for Atlantic Shark 
Identification Workshop attendance requirements will be lower than 
those associated with the no action alternative, but only for Atlantic 
shark dealers that: (1) opt to send a proxy (or proxies) to the 
workshop; (2) have multiple locations listed on their permit; and, (3) 
only first receive shark products at some of the locations listed on 
their Atlantic shark dealer permit. Costs will remain unchanged for 
shark dealers that do not meet these three criteria. For dealers that 
meet these criteria, the costs will be reduced by an amount equivalent 
to sending proxies for each location listed on the permit that do not 
first receive shark products. For example, if a dealer chooses to send 
proxies and has four locations listed on the permit, but only two of 
those locations first receive shark products, the costs would be 
reduced by the amount equivalent to sending two proxies to an Atlantic 
Shark Identification Workshop.
    The selected alternative also requires that extensions of a 
dealer's business, such as trucks or other conveyances, must possess a 
copy of a valid dealer or proxy certificate issued to a place of 
business covered by the dealer permit. This requirement allows trucks 
or other conveyances to be immediately identified as extensions of a 
NMFS-certified place of business which is eligible to receive Atlantic 
sharks. NMFS anticipates that this requirement will have minimal costs 
but will improve the enforceability of existing Atlantic shark 
regulations.
    There are no other significant alternatives for Atlantic Shark 
Identification Workshop attendance requirements except for these two 
alternatives. Administratively it is not currently feasible, for both 
technical and programmatic reasons, to modify the NMFS permits database 
to accommodate dealers having different locations where they receive 
different species. The selected alternative requires dealers to display 
an Atlantic Shark Identification Workshop certificate at all locations 
where sharks are first received. Therefore, it achieves the objective 
of improving the identification and reporting of shark species, while 
simultaneously lessening impacts on dealers. The selected alternative 
will also improve the enforceability of existing Atlantic shark 
regulations by requiring extensions of a dealer's business, such as 
trucks or other conveyances, to possess a copy of a valid dealer or 
proxy certificate issued to a place of business covered by the dealer 
permit.

List of Subjects in 50 CFR Part 635

    Fisheries, Fishing, Fishing vessels, Management, Penalties, 
Reporting and recordkeeping requirements.

    Dated: June 27, 2008.
John Oliver
Deputy Assistant Administrator for Operations, National Marine 
Fisheries Service.

0
For reasons set out in the preamble, 50 CFR part 635 is amended as 
follows:

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

0
1. The authority citation for part 635 continues to read as follows:

    Authority: 16 U.S.C. 971 et seq.; 16 U.S.C. 1801 et seq.

0
2. In Sec.  635.4, paragraph (m)(2) is revised to read as follows:


Sec.  635.4  Permits and fees.

* * * * *
    (m) * * *
    (2) Shark and swordfish LAPs. The owner of a vessel of the U.S. 
that fishes for, possesses, lands or sells shark or swordfish from the 
management unit, or that takes or possesses such shark or swordfish as 
incidental catch, must have the applicable limited access permit(s) 
issued pursuant to the requirements in paragraphs (e) and (f) of this 
section. Only persons holding non-expired shark and swordfish limited 
access permit(s) in the preceding year are eligible to renew those 
limited access permit(s). Transferors may not renew limited access 
permits that have been transferred according to the procedures in 
paragraph (l) of this section.

0
3. In Sec.  635.8, paragraphs (b)(4), (b)(5), and (c)(4) are revised to 
read as follows:


Sec.  635.8  Workshops.

* * * * *
    (b) * * *
    (4) Dealers may send a proxy to the Atlantic shark identification 
workshops. If a dealer opts to send a proxy, the dealer must designate 
at least one proxy from each place of business listed on the dealer 
permit, issued pursuant to Sec.  635.4(g)(2), which first receives 
Atlantic shark by way of purchase, barter, or trade. The proxy must be 
a person who is currently employed by a place of business covered by 
the dealer's permit; is a primary participant in the identification, 
weighing, and/or first receipt of fish as they are offloaded from a 
vessel; and fills out dealer reports as required under Sec.  635.5. 
Only one certificate will be issued to each proxy. If a proxy is no 
longer employed by a place of business covered by the dealer's permit, 
the dealer or another proxy must be certified as having completed a 
workshop pursuant to this section. At least one individual from each 
place of business listed on the dealer permit which first receives 
Atlantic sharks by way of purchase, barter, or trade must possess a 
valid Atlantic shark identification workshop certificate.
    (5) A Federal Atlantic shark dealer issued or required to be issued 
a shark dealer permit pursuant to Sec.  635.4(g)(2) must possess and 
make available for

[[Page 38154]]

inspection a valid Atlantic shark identification workshop certificate 
at each place of business listed on the dealer permit which first 
receives Atlantic sharks by way of purchase, barter, or trade. For the 
purposes of this part, trucks or other conveyances of a dealer's place 
of business are considered to be extensions of a dealer's place of 
business and must possess a copy of a valid dealer or proxy certificate 
issued to a place of business covered by the dealer permit. A copy of 
this certificate issued to the dealer or proxy must be included in the 
dealer's application package to obtain or renew a shark dealer permit. 
If multiple businesses are authorized to receive Atlantic sharks under 
the dealer's permit, a copy of the workshop certificate for each place 
of business listed on the dealer permit which first receives Atlantic 
sharks by way of purchase, barter, or trade must be included in the 
shark dealer permit renewal application package.
    (c) * * *
    (4) An Atlantic shark dealer may not first receive, purchase, 
trade, or barter for Atlantic shark without a valid Atlantic shark 
identification workshop certificate. A valid Atlantic shark 
identification workshop certificate must be maintained on the premises 
of each place of business listed on the dealer permit which first 
receives Atlantic sharks by way of purchase, barter, or trade. An 
Atlantic shark dealer may not renew a Federal dealer permit issued 
pursuant to Sec.  635.4(g)(2) unless a valid Atlantic shark 
identification workshop certificate has been submitted with the permit 
renewal application. If the dealer is not certified, the dealer must 
submit a copy of a proxy certificate for each place of business listed 
on the dealer permit which first receives Atlantic sharks by way of 
purchase, barter, or trade.
* * * * *

0
4. In Sec.  635.21, paragraph (e)(4)(iii) is revised to read as 
follows:


Sec.  635.21  Gear operation and deployment restrictions.

* * * * *
    (e) * * *
    (4) * * *
    (iii) A person aboard a vessel issued or required to be issued a 
valid directed handgear LAP for Atlantic swordfish may not fish for 
swordfish with any gear other than handgear. A swordfish will be deemed 
to have been harvested by longline when the fish is on board or 
offloaded from a vessel using or having on board longline gear. Only 
vessels that have been issued, or that are required to have been 
issued, a valid directed or handgear swordfish LAP under this part may 
utilize or possess buoy gear. Vessels utilizing buoy gear may not 
possess or deploy more than 35 floatation devices, and may not deploy 
more than 35 individual buoy gears per vessel. Buoy gear must be 
constructed and deployed so that the hooks and/or gangions are attached 
to the vertical portion of the mainline. Floatation devices may be 
attached to one but not both ends of the mainline, and no hooks or 
gangions may be attached to any floatation device or horizontal portion 
of the mainline. If more than one floatation device is attached to a 
buoy gear, no hook or gangion may be attached to the mainline between 
them. Individual buoy gears may not be linked, clipped, or connected 
together in any way. Buoy gears must be released and retrieved by hand. 
All deployed buoy gear must have some type of monitoring equipment 
affixed to it including, but not limited to, radar reflectors, beeper 
devices, lights, or reflective tape. If only reflective tape is 
affixed, the vessel deploying the buoy gear must possess on board an 
operable spotlight capable of illuminating deployed floatation devices. 
If a gear monitoring device is positively buoyant, and rigged to be 
attached to a fishing gear, it is included in the 35 floatation device 
vessel limit and must be marked appropriately.
* * * * *

0
5. In Sec.  635.71, paragraph (d)(14) is revised to read as follows:


Sec.  635.71  Prohibitions.

* * * * *
    (d) * * *
    (14) Receive, purchase, trade, or barter for Atlantic shark without 
making available for inspection, at each of the dealer's places of 
business listed on the dealer permit which first receives Atlantic 
sharks by way of purchase, barter, or trade, a valid Atlantic shark 
identification workshop certificate issued by NMFS in violation of 
Sec.  635.8(b), except that trucks or other conveyances of the business 
must possess a copy of such certificate.
* * * * *
[FR Doc. E8-15195 Filed 7-2-08; 8:45 am]
BILLING CODE 3510-22-S