[Federal Register Volume 76, Number 212 (Wednesday, November 2, 2011)]
[Proposed Rules]
[Pages 67656-67667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-28421]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 100217095-1652-02]
RIN 0648-AY56


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Reef Fish Fishery of the Gulf of Mexico; Amendment 32

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes to implement management measures described in 
Amendment 32 to the Fishery Management Plan for the Reef Fish

[[Page 67657]]

Resources of the Gulf of Mexico (FMP) prepared by the Gulf of Mexico 
Fishery Management Council (Council). If implemented, this rule would 
adjust the commercial gag quota and recreational annual catch target 
(ACT) for 2012 through 2015 and subsequent fishing years, consistent 
with the gag rebuilding plan established in Amendment 32; adjust the 
shallow-water grouper (SWG) quota; adjust the commercial and 
recreational sector's annual catch limits (ACLs) for gag and red 
grouper; adjust the commercial ACL for SWG; establish a formula-based 
method for setting gag and red grouper multi-use allocation for the 
grouper/tilefish individual fishing quota (IFQ) program in the Gulf of 
Mexico (Gulf); set the recreational gag fishing season from July 1 
through October 31; reduce the gag commercial size limit to 22 inches 
(59 cm) total length (TL); and modify the gag and red grouper 
accountability measures (AMs). In addition, Amendment 32 would 
establish gag commercial ACTs and a 10-year gag rebuilding plan 
consistent with the requirements of the Magnuson-Stevens Act. This 
proposed rule is intended to end overfishing of gag, allow the gag 
stock to rebuild, and co-manage gag and red grouper by implementing 
concurrent management measures.

DATES: Written comments must be received on or before December 2, 2011.

ADDRESSES: You may submit comments on the proposed rule identified by 
``NOAA-NMFS-2011-0135'' by any of the following methods:
     Electronic submissions: Submit electronic comments via the 
Federal e-Rulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Mail: Peter Hood, Southeast Regional Office, NMFS, 263 
13th Avenue South, St. Petersburg, FL 33701.
    Instructions: All comments received are a part of the public record 
and will generally be posted to http://www.regulations.gov without 
change. All Personal Identifying Information (for example, name, 
address, etc.) voluntarily submitted by the commenter may be publicly 
accessible. Do not submit Confidential Business Information or 
otherwise sensitive or protected information.
    To submit comments through the Federal e-Rulemaking Portal: http://www.regulations.gov, click on ``submit a comment,'' then enter ``NOAA-
NMFS-2011-0135'' in the keyword search and click on ``search.'' To view 
posted comments during the comment period, enter ``NOAA-NMFS-2011-
0135'' in the keyword search and click on ``search.'' NMFS will accept 
anonymous comments (enter N/A in the required field if you wish to 
remain anonymous). You may submit attachments to electronic comments in 
Microsoft Word, Excel, WordPerfect, or Adobe PDF file formats only.
    Comments through means not specified in this rule will not be 
accepted.
    Electronic copies of Amendment 32, which includes a draft 
environmental impact statement (DEIS), an initial regulatory 
flexibility analysis (IRFA), and a regulatory impact review, may be 
obtained from the Southeast Regional Office Web Site at http://sero.nmfs.noaa.gov/sf/GrouperSnapperandReefFish.htm.

FOR FURTHER INFORMATION CONTACT: Peter Hood, Southeast Regional Office, 
NMFS, telephone: (727) 824-5305; email: [email protected].

SUPPLEMENTARY INFORMATION: The reef fish fishery of the Gulf of Mexico 
is managed under the FMP. The FMP was prepared by the Council and is 
implemented through regulations at 50 CFR part 622 under the authority 
of the Magnuson-Stevens Act.

Background

    The Magnuson-Stevens Act requires NMFS and regional fishery 
management councils to prevent overfishing and achieve, on a continuing 
basis, the optimum yield (OY) from federally managed fish stocks. These 
mandates are intended to ensure fishery resources are managed for the 
greatest overall benefit to the nation, particularly with respect to 
providing food production and recreational opportunities, and 
protecting marine ecosystems. To further this goal, the Magnuson-
Stevens Act requires fishery managers to specify their strategy to 
rebuild overfished stocks to a sustainable level within a certain time 
frame, and to minimize bycatch and bycatch mortality to the extent 
practicable. The reauthorized Magnuson-Stevens Act, as amended through 
January 12, 2007, requires the councils to establish ACLs for each 
stock/stock complex and AMs to ensure these ACLs are not exceeded. This 
proposed rule addresses these requirements for gag, red grouper, and 
the SWG complex.

Status of Stocks

    Southeast Data, Assessment, and Review (SEDAR) update stock 
assessments were conducted for gag and red grouper in 2009. For gag, 
the assessment indicated the stock size had declined since 2005 and 
that a large part of the decline was attributed to a 2005 episodic 
mortality event (most likely associated with red tide). The update 
assessment indicated the gag stock was both overfished and undergoing 
overfishing. The Council was informed of this status determination in 
August 2009.
    A rerun of the update assessment for gag was completed by the SEDAR 
update assessment review panel in December 2010. This rerun assessment 
identified issues with gag discards and was reviewed by the Council's 
Scientific and Statistical Committee (SSC) in January 2011. The rerun 
indicated the gag stock had improved from the 2009 update assessment; 
however, the improvement was not substantial enough to change the 
status of the gag stock. Based on the rerun, the Council requested a 
series of temporary rules to manage the gag stock until Amendment 32 
could be implemented. The most recent temporary rule set the gag 
commercial quota to 430,000 lb (195,045 kg) and established a gag 
recreational season from September 16 through November 15 (76 FR 31874, 
June 2, 2011) and became effective June 1, 2011.
    For red grouper, a 2009 SEDAR update assessment indicated that 
although the stock continues to be neither overfished nor undergoing 
overfishing, the stock has declined since 2005. In late 2010, after 
reviewing the rerun of the assessment update, the SSC recommended that 
the overfishing limit for red grouper be set at 8.10 million lb (3.67 
million kg) (the equilibrium yield at FMSY (the fishing 
mortality associated with harvesting the maximum sustainable yield) and 
the ABC be set at 7.93 million lb (3.60 million kg) (the F associated 
with equilibrium optimum yield (FREBUILD)).
    At the request of the Council, NMFS ran a new projection in 2011 
that incorporated revised 2010 landings. Actual landings from 2010 were 
lower than projected, likely due to new longline restrictions 
implemented through Amendment 31 to the FMP (75 FR 21512, April 26, 
2010) and disruptions in the fishery associated with the Deepwater 
Horizon oil spill that occurred in April 2010. The yield streams from 
this rerun showed that TAC could be increased in 2011. The Council has 
submitted a regulatory amendment for red grouper that, if approved, 
will increase the 2011 TAC and will set TAC through 2015 and subsequent 
fishing years, following FOY (fishing mortality associated 
with harvesting at the optimum yield stream as the stock rebuilds). The 
regulatory amendment also includes a provision to increase the red 
grouper bag limit.

[[Page 67658]]

Gag Rebuilding Plan

    The Council selected a 10-year rebuilding plan in Amendment 32 for 
gag. This is the maximum time frame allowed under the requirements of 
the Magnuson-Stevens Act. However, because the Council intends to 
manage the stock using the FOY yield stream, which results 
in more restrictive TACs than FREBUILD, the stock is 
projected to be rebuilt in 7 years. Given management uncertainties and 
uncertainties regarding stock assessment projections more than a few 
years in the future, a 10-year rebuilding plan would allow for 
fluctuations in catches and provide leeway to account for the needs of 
fishing communities when setting catch levels and management measures.

Management Measures Contained in This Proposed Rule

ACLs and ACTs

    Based on protocols developed in Amendment 30B, sector-specific gag 
ACLs are derived from allocating the ABC between sectors.
    The allocation of gag between the commercial and recreational 
sectors is 39 percent and 61 percent, respectively. This rule would 
implement ACLs for the gag commercial and recreational sectors based on 
this allocation. The ACLs would be set at the FREBUILD (the 
fishing mortality associated with the harvest needed to rebuild the 
stock). The ACTs (for the recreational sector only) would be set at the 
FOY (the fishing mortality associated with harvesting the 
optimum yield).
    This rule would set the commercial gag ACLs at 0.788 million lb 
(0.357 million kg) for 2012, 0.956 million lb (0.434 million kg) for 
2013, 1.100 million lb (0.499 million kg) for 2014, and 1.217 million 
lb (0.552 million kg) for 2015 and subsequent fishing years. For the 
recreational sector, this rule would set the ACLs at 1.232 million lb 
(0.599 million kg) for 2012, 1.495 million lb (0.678 million kg) for 
2013, 1.720 million lb (0.780 million kg) for 2014, and 1.903 million 
lb (0.863 million kg) for 2015 and subsequent fishing years.
    This rule would set the recreational ACTs for gag at 1.031 million 
lb (0.468 million kg) for 2012, 1.287 million lb (0.584 million kg) for 
2013, 1.519 million lb (0.689 million kg) for 2014, and 1.708 million 
lb (0.775 million kg) for 2015 and subsequent fishing years. 
Recreational landings would be evaluated relative to the ACL based on a 
moving multi-year average of landings, as described in the FMP.
    Reductions to the gag quota under the rebuilding plan assume a 
proportional reduction in dead discards of gag. However, due to the 
limited amount of gag IFQ allocation available in the initial years of 
the gag rebuilding plan, gag bycatch and discards from fishermen 
targeting red grouper or other fish may be higher than assumed in the 
assessment projections. Therefore, the Council determined the quota 
should be reduced from the ACT by 14 percent to account for additional 
dead discards not accounted for in the assessment analyses. Therefore, 
this rule would set the commercial gag quota at 0.567 million lb (0.257 
million kg) for 2012, 0.708 million lb (0.321 million kg) for 2013, 
0.835 million lb (0.378 million kg) for 2014, and 0.939 million lb 
(0.426 million kg) for 2015 and subsequent fishing years.
    Reductions in the gag quota correspond to reductions in the SWG 
quota. Therefore, this rule would set the commercial SWG quota at 6.347 
million lb (2.879 million kg) for 2012, 6.648 million lb (3.015 million 
kg) for 2013, 6.875 million lb (3.118 million kg) for 2014, 7.069 
million lb (3.206 million kg) for 2015 and subsequent fishing years.
    For red grouper, the protocols for setting sector-specific ACLs are 
similar to those for gag. The ABC recommended by the SSC is the 
equilibrium OY. This value was estimated at 7.93 million lb (3.60 
million kg). Using the 76 percent commercial and 24 percent 
recreational allocation as established through Amendment 30B to the FMP 
(April 16, 2009, 74 FR 17603), this rule would set the commercial ACL 
at 6.03 million lb (2.735 million kg) and the recreational ACL at 1.90 
million lb (0.862 million kg). The rule would set the recreational ACT 
at 1.730 million lb (0.785 million kg). Recreational landings would be 
evaluated relative to the ACL based on a moving multi-year average of 
landings, as described in the FMP. Red grouper commercial quotas and 
ACTs are being established through a separate regulatory amendment that 
is expected to become effective in late 2011.
    Because the commercial SWG ACL is the sum of the commercial gag and 
red grouper ACLs, in addition to the 0.41 million lb (0.19 kg) of SWG 
allowance, the rule proposes to set the commercial SWG ACL at 8.04 
million lb (3.65 million kg).

AMs

    This proposed rule would modify the AMs for gag, red grouper, and 
SWG. AMs are intended to prevent ACLs from being exceeded or mitigate 
overages after ACLs have been exceeded. For the commercial sector, the 
current AMs were implemented through Amendment 30B to the FMP (74 FR 
17603, April 16, 2009), before red grouper, gag and SWG were managed 
under an IFQ program. Therefore, AMs were triggered if the sector 
exceeded the respective species' quota. However, the IFQ program acts 
as an AM because the overall quota is divided among shareholders and 
the program includes controls that do not allow shareholders to exceed 
their individual allocation of the quota. To reduce redundancy in the 
commercial AMs, this rule proposes to eliminate the quota-based AM in 
favor of the existing IFQ program.
    For the recreational sector, the current AMs pertain to red grouper 
and gag. The AMs restrict subsequent increases in future ACTs and ACLs 
if the current year's ACL is exceeded. The AMs also allow the Assistant 
Administrator for Fisheries (AA) to reduce the length of the following 
recreational SWG fishing season by the amount necessary to ensure 
recreational landings do not exceed the gag or red grouper ACT the 
following fishing year.
    Current recreational AMs for gag and red grouper have no provisions 
for handling overages or in-season adjustments as authorized under the 
National Standard 1 guidelines (74 FR 3178, January 16, 2009). Overage 
adjustments are needed particularly for gag to follow guidance for 
stocks and stock complexes in rebuilding plans to include overage 
adjustments that reduce the ACLs in the next fishing year.
    This rule would add an overage adjustment and in-season 
recreational AMs for gag and red grouper. Should gag or red grouper be 
in a rebuilding plan and the ACL exceeded, the overage adjustment would 
be equal to the full amount of the overage, unless the best scientific 
information available shows that a greater, lesser, or no overage 
adjustment is needed to mitigate the effects of the overage. In 
addition, the rule proposes that if gag or red grouper landings have 
met or are projected to exceed the ACL, as estimated by the Southeast 
Fisheries Science Center (SEFSC), without regard to overfished status, 
the AA would file a notification with the Office of the Federal 
Register closing the recreational harvest for the species projected to 
reach its ACL for the rest of the fishing year on the date the ACL is 
projected to be harvested.
    In addition to these AMs, this rule proposes an AM for recreational 
red grouper that incorporates an adaptive management approach should 
the recreational sector exceed its ACL. A red grouper regulatory 
amendment, currently being reviewed by NMFS, includes a red grouper bag 
limit increase from two to four fish, within the four-fish aggregate 
grouper bag limit.

[[Page 67659]]

The adaptive management AM would reduce the bag limit from four fish to 
three fish if, at the end of any season, it is determined that the 
recreational sector has exceeded the recreational red grouper ACL. The 
bag limit would be reduced from three fish to two fish if, at the end 
of any subsequent season, it is determined that the recreational sector 
has exceeded its ACL again. The minimum bag limit for red grouper would 
remain at two fish, regardless of whether the recreational sector 
exceeded the ACL in subsequent fishing years. Based on past annual 
landings, a two-fish bag limit is likely to be sufficient to avoid 
exceeding the recreational ACL.

Other Commercial Management Measures

    The commercial grouper and tilefish fisheries are currently managed 
under an IFQ program implemented on January 1, 2010, through Amendment 
29 to the FMP (74 FR 44732, August 31, 2009). To allow for flexibility 
and account for varying gag to red grouper ratios across the Gulf, at 
the beginning of each fishing year, a percentage of the gag and red 
grouper allocation is designated as multi-use allocation, valid for 
harvesting either gag or red grouper. Currently, 4 percent of the red 
grouper allocation and 8 percent of the gag allocation are designated 
as multi-use allocation. However, under the red grouper and gag ACLs 
proposed in this rule, the current multi-use allocations could result 
in commercial harvest of red grouper or gag exceeding its sector ACL. 
To prevent this from occurring, this rule proposes that if a stock is 
not under a rebuilding plan, the respective multi-use allocation would 
be based on the difference between the ACL and the ACT. If a stock is 
under a rebuilding plan, as with gag, then no multi-use allocation 
would be set aside. Therefore, red grouper multi-use allocation would 
be set to zero if gag is under a rebuilding plan. The equations used to 
determine multi-use allocation for gag and red grouper are as follows:

Gag Multi-use (in percent) = 100x [Red Grouper ACL-Red Grouper 
Allocation]/Gag Allocation.
Red Grouper Multi-use (in percent) = 100x [Gag ACL-Gag Allocation]/Red 
Grouper Allocation.

    National Standard 9 dictates bycatch and the mortality of 
unavoidable bycatch should be minimized to the extent practicable. 
Because the commercial sector fishes in deeper waters on average than 
the recreational sector, it has a higher discard mortality rate. One 
possible way to reduce gag regulatory dead discards is to reduce the 
commercial minimum size limit so that gag that would have been 
discarded can be retained. To reduce gag discards, this rule would 
reduce the minimum size limit of gag from 24 inches (61 cm) to 22 
inches (56 cm) TL. Until an IFQ shareholder's gag allocation is 
reached, this alternative is expected to reduce total gag discards 
(live plus dead) by 31 percent for the vertical line component of the 
Gulf reef fish fishery and by 27.8 percent for the longline component 
of the Gulf reef fish fishery. After an IFQ shareholder's gag 
allocation has been fished, all gag would be discarded. However, a 
commercial fisherman without IFQ allocation available to harvest gag 
would not specifically target gag and so the species would be 
encountered less frequently as fishermen target other stocks for 
harvest. An additional advantage of this measure is that it would 
simplify enforcement by having a single size limit for both sectors.

Other Recreational Management Measures

    In determining the percentage reductions needed in total 
recreational gag removals (landed fish plus dead discards), the Council 
evaluated two baseline time periods: 2006-2008 when effort was high, 
and 2009 when effort was low. The needed reductions are between 36 
percent and 61 percent depending on the baseline time period and F 
value used. In addition, different management strategies used to 
achieve reductions in the landed catch of gag change the number of 
discards and dead discards. Thus, the number of dead discards was taken 
into account in calculating the expected reductions from different 
management strategies.
    In selecting a recreational management strategy, the Council 
favored achieving the longest fishing season for gag, while maintaining 
the current size and bag limits. Therefore, this rule proposes to set 
the gag fishing season from June 1 through October 31. The current two-
gag bag limit within the four-fish grouper aggregate bag limit and 22-
inch (56-cm) TL minimum size limit will remain unchanged.

Other Changes to Codified Text

    This proposed rule also includes minor revisions to codified text 
to align existing language with new codified terminology. In Sec.  
622.49(a)(1) and (2), ``commercial fishery'' and ``recreational 
fishery'' would be revised to read ``commercial sector'' and 
``recreational sector'', and in Sec.  622.49(a)(2)(ii), the last two 
sentences would be revised to a more generic statement to read, 
``Recreational landings will be evaluated relative to the ACL based on 
a moving multi-year average of landings, as described in the FMP.'' 
These revisions are consistent with the terminology used in Amendment 
32.

Classification

    Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the 
AA has determined that this proposed rule is consistent with Amendment 
32, the Magnuson-Stevens Act and other applicable law, subject to 
further consideration after public comment.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    NMFS prepared an IRFA, as required by section 603 of the Regulatory 
Flexibility Act, for this proposed rule. The IRFA describes the 
economic impact that this rule, if adopted, would have on small 
entities. A description of the action, why it is being considered, and 
the objectives of, and legal basis for this action are contained at the 
beginning of this section in the preamble and in the SUMMARY section of 
the preamble. A copy of the full analysis is available from NMFS (see 
ADDRESSES). A summary of the IRFA follows.
    The Magnuson-Stevens Act provides the statutory basis for this 
rule. No duplicative, overlapping, or conflicting Federal rules have 
been identified. The preamble of this proposed rule provides a 
statement of the need for and objectives of this proposed rule, and it 
is not repeated here.
    This rule is expected to directly affect commercial harvesting and 
for-hire operations. The Small Business Administration (SBA) has 
established size criteria for all major industry sectors in the U.S., 
including fish harvesters. A business involved in fish harvesting is 
classified as a small business if it is independently owned and 
operated, is not dominant in its field of operation (including its 
affiliates), and has combined annual receipts not in excess of $4.0 
million (NAICS code 114111, finfish fishing) for all its affiliated 
operations worldwide. For for-hire vessels, the other qualifiers apply 
and the receipts threshold is $7.0 million (NAICS code 713990, 
recreational industries).
    This rule is expected to directly affect commercial fishing vessels 
whose owners possess gag or red grouper fishing quota shares and for-
hire fishing vessels that harvest gag. As of October 1, 2009, 970 
entities owned a valid commercial Gulf reef fish permit and thus were 
eligible for initial shares and allocation in the grouper and tilefish

[[Page 67660]]

IFQ program. Of these 970 entities, 908 entities initially received 
shares and allocation of grouper or tilefish, and 875 entities 
specifically received gag shares and an initial allocation of the 
commercial sector's gag quota in 2010. These 875 entities are expected 
to be directly affected by the actions to reduce the gag commercial 
quota to 86 percent of the ACT to account for dead discards, modify the 
percentages of red grouper and gag allocation that can be converted 
into multi-use allocation, and reduce the commercial size limit for 
gag. Of these 875 entities, 815 also received red grouper shares and an 
initial allocation of the commercial sector's red grouper quota in 
2010.
    Of the 875 entities that initially received gag shares, 215 were 
not commercially fishing in 2008 or 2009 and thus had no commercial 
fishing revenue during these years. On average, these 215 entities 
received an initial allocation of 874 lb (397 kg) of gag in 2010. Eight 
of these 215 entities also received a bottom longline endorsement in 
2010. These 8 entities received a much higher initial allocation of gag 
in 2010, with an average of 3,139 lb (1,427 kg).
    The other 660 entities that initially received gag shares and 
allocations in 2010 were active in commercial fisheries in 2008 or 
2009. The maximum annual commercial fishing gross revenue in 2008 or 
2009 by an individual vessel with commercial gag fishing quota shares 
was approximately $606,000 (2008 dollars).
    The average charterboat is estimated to earn approximately $88,000 
(2008 dollars) in annual gross revenue, while the average headboat is 
estimated to earn approximately $461,000 (2008 dollars). Based on these 
values, all commercial and for-hire fishing vessels expected to be 
directly affected by this rule are determined for the purpose of this 
analysis to be small business entities.
    Of the 660 commercial fishing vessels with commercial landings in 
2008 or 2009, 139 vessels did not have any gag landings in 2008 or 
2009. Their average annual gross revenue in these 2 years was 
approximately $50,800 (2008 dollars). The vast majority of these 
vessels' commercial fishing revenue is from a combination of snapper, 
mackerel, dolphin, and wahoo landings. On average, in 2010, these 
vessels received an initial allocation of 540 lb (245 kg) of gag quota.
    The remaining 521 commercially active fishing vessels did have 
landings of gag in 2008 or 2009. Their average annual gross revenue 
from commercial fishing was approximately $71,000 (2008 dollars) 
between the 2 years. On average, these vessels had 2,375 lb (1,080 kg) 
and 1,300 lb (591 kg) of gag landings in 2008 and 2009 respectively, or 
1,835 lb (834 kg) between the 2 years. Gag landings accounted for 
approximately 8 percent of these vessels' annual average gross revenue, 
and thus they are somewhat, though not significantly, dependent on 
revenue from gag landings. These vessels' average initial gag 
allocation in 2010 was 2,121 lb (964 kg). Therefore, on average, their 
2008 gag landings were very near their 2010 gag allocation, but their 
2009 gag landings were considerably less than their 2010 allocation.
    Of these 521 vessels, 52 vessels also received a bottom longline 
endorsement in 2010. These particular vessels' average annual revenue 
was approximately $156,000 (2008 dollars) in 2008 and 2009. Revenue 
from gag landings decreased from approximately $15,900 to $8,400 in 
2009 and thus they became relatively less dependent on gag landings. 
These vessels are highly dependent on revenue from red grouper 
landings, which accounted for 54 percent and 47 percent of their gross 
revenue in 2008 and 2009, respectively. Revenue from deep-water grouper 
(DWG) landings decreased only slightly, from approximately $36,000 in 
2008 to $31,000 in 2009, and thus these vessels became relatively more 
dependent on revenue from DWG landings. Their average initial 2010 
allocation of gag was approximately 5,507 lb (2,503 kg) while their 
average gag landings were 3,933 lb (1,788 kg) and 2,204 lb (1,002 kg) 
in 2008 and 2009, respectively. Thus, vessels that now have a bottom 
longline endorsement have been harvesting well below that allocation in 
recent years, particularly in 2009.
    The for-hire fleet is comprised of charter vessels, which charge a 
fee on a vessel basis, and headboats, which charge a fee on an 
individual angler (head) basis. The harvest of gag in the exclusive 
economic zone (EEZ) by for-hire vessels requires a charter vessel/
headboat permit for Gulf reef fish. On March 23, 2010, there were 1,376 
valid or renewable for-hire Gulf reef fish permits. A valid permit is a 
non-expired permit. Expired reef fish for-hire permits may not be 
actively fished, but are renewable for up to 1 year after expiration. 
Because of the extended permit renewal period, numerous permits may be 
expired but still renewable at any given time of the year during the 
renewal period after the permit's expiration. The majority (823, or 
approximately 60 percent) of the 1,376 valid or renewable permits were 
registered with Florida addresses. The registration address for the 
Federal permit does not restrict operation to Federal waters off that 
state; however, vessels would be subject to any applicable state 
permitting requirements. Although the permit does not distinguish 
between headboats and charter vessels, it is estimated that 79 
headboats operate in the Gulf. The majority of these vessels (43, or 
approximately 54 percent) operate from Florida ports. Given that nearly 
99 percent of target effort for gag and 97 percent of the economic 
impacts from the recreational sector for gag in the Gulf reef fish 
fishery are in west Florida, it is assumed that the 823 for-hire 
vessels (780 charter vessels and 43 headboats) in Florida are expected 
to be directly affected by the proposed action to establish a 
recreational gag fishing season of July 1 through October 31.
    Establishing a rebuilding plan for gag not expected to generate 
direct, adverse economic effects on commercial or for-hire entities. 
Thus, the proposed action to establish a rebuilding plan for gag that 
would rebuild the gag stock to a level consistent with producing 
maximum sustainable yield in 10 years or less is not expected to reduce 
profits for commercial or for-hire entities.
    Net operating revenues (NOR) are assumed to be representative of 
profit for for-hire vessels. It is assumed that 823 for-hire vessels, 
780 charter vessels, and 43 headboats, participate in the recreational 
gag component of the Gulf reef fish fishery. Estimates of NOR from 
recreational fisheries other than gag, and thus across all fisheries in 
which these charter vessels and headboats participate, are not 
currently available. However, on average, NOR for charter vessels from 
trips targeting gag are estimated to be approximately $1.56 million per 
year while NOR for headboats from trips targeting gag are estimated to 
be $91,300 per year. NOR for all trips targeting gag are estimated to 
be approximately $1.65 million per year. The average annual NOR from 
trips targeting gag are estimated to be $2,000 per charter vessel and 
$2,124 per headboat.
    When the length of the recreational gag season is reduced and the 
daily bag limit for gag is set at zero, some trips that formerly 
targeted gag will instead target other species while other trips that 
formerly targeted gag will be cancelled. Assuming the NOR per trip is 
constant regardless of the species targeted, for-hire operators will 
only lose NOR from trips cancelled as a result of the shortened season 
length. Information regarding the number of trips cancelled as a result 
of the

[[Page 67661]]

shortened season is not currently available. Thus, this analysis 
assumes all of the current for-hire trips targeting gag will be 
cancelled when the recreational sector is closed. Because some of these 
trips would probably not be cancelled, this assumption is expected to 
overestimate the actual reduction in NOR associated with a shorter 
season. Thus, the following estimates of losses in NOR and profit for 
charter vessels and headboats should be considered maximum values.
    Under the proposed action to establish a recreational gag fishing 
season of July 1 through October 31, the losses in NOR from trips 
targeting gag for charter vessels and headboats are estimated to be 
approximately $1,304,000 and $76,000, respectively, and thus NOR for 
all trips targeting gag is estimated to be approximately $1,380,000. 
The average annual losses in NOR from trips targeting gag are estimated 
to be $1,672 and $767 per charter vessel and headboat, respectively. 
These NOR losses represent a loss in profit from trips targeting gag of 
approximately 84 percent and 36 percent per charter vessel and 
headboat, respectively.
    The proposed action to establish a recreational gag fishing season 
of July 1 through October 31 is not expected to affect profit from 
trips not targeting gag for charter vessels and headboats. For-hire 
vessel dependence on fishing for individual species cannot be 
determined with available data. Although some for-hire vessels are 
likely more dependent on trips that target gag than other for-hire 
vessels, overall, about 3 percent of for-hire anglers are estimated to 
target gag. As a result, while the action would be expected to 
substantially affect the NOR derived from gag trips, overall, gag trips 
do not comprise a substantial portion of total for-hire trips nor would 
they, by extension, be expected to account for a substantial portion of 
total for-hire NOR.
    Under the proposed action to increase the recreational bag limit 
for red grouper from two fish to four fish, the number of trips in all 
recreational fishing modes is assumed to remain the same regardless of 
any change in the red grouper bag limit. As such, no changes to 
producer surplus in the for-hire sector are expected. Thus, the 
proposed action is not expected to reduce profits for for-hire 
entities.
    The 215 entities with gag shares that did not participate in 
commercial fishing in 2008 or 2009 have no commercial fishing revenue 
and did not earn profit from commercial fishing in those 2 years. Under 
the proposed action to reduce the commercial gag quota to 86 percent of 
the ACT to account for dead discards, their average allocation of gag 
in 2012 would be reduced from 421 lb (191 kg) to 362 lb (165 kg), or by 
approximately 59 lb (27 kg). Using the average 2008 price of $3.52 per 
lb, this loss in allocation could potentially represent a loss of 
nearly $208 (2008 dollars) in gross revenue per entity. Using the 2010 
average price of $1.00 per lb of gag allocation, this loss in 
allocation could potentially represent a loss of $59 (2008 dollars) in 
net revenue per entity. For 8 of these 215 entities that also possess 
longline endorsements, their average allocation of gag in 2012 would be 
reduced from 1,512 lb (687 kg) to 1,300 lb (591 kg), or by 212 lb (96 
kg). Thus, their potential losses in gross revenue and net revenue, 
estimated to be $746 and $212 (2008 dollars) respectively, are expected 
to be somewhat higher.
    However, in general, these potential losses in gross revenue and 
net revenue would only be realized if these 215 entities not only 
become active in commercial fishing but also specifically intend to 
harvest gag in 2012 and at a level above their reduced allocation. That 
is, a reduction in allocation can only lead to a reduction in landings, 
and thus gross revenue, if these entities intend to harvest at levels 
above their reduced allocation. Alternatively, these losses in gross 
and net revenue could be due to these entities' inability to sell the 
allocations they are losing under the proposed action, though this 
possibility presumes that a demand for these allocations exists. 
Regardless, the significance of these potential losses in gross and net 
revenue to these 215 entities cannot be evaluated given the lack of 
information on potential gross revenue, net revenue, and profits from 
commercial fishing in general and specifically for gag.
    Similarly, for the 139 entities with gag shares that participated 
in commercial fisheries other than gag, they earned approximately 
$50,800 in annual gross revenue on average in 2008 and 2009. Profit 
estimates for these vessels are not currently available. However, 
because they did not have any gag landings, none of their gross revenue 
and thus none of their potential profits were the result of gag 
harvests. Under the proposed action to reduce the commercial gag quota 
to 86 percent of the ACT to account for dead discards, their average 
allocation of gag in 2012 would be reduced from 260 lb (118 kg) to 224 
lb ((102 kg), or by 36 lb (16 kg). Using the average 2008 price of 
$3.52 per lb, this loss in allocation could potentially represent a 
loss of $127 (2008 dollars) in gross revenue per entity. Using the 2010 
average price of $1.00 per lb of gag allocation, this loss in 
allocation could potentially represent a loss of approximately $36 
(2008 dollars) in net revenue per entity.
    However, these potential losses in gross and net revenue could only 
lead to a loss in profits if these 139 entities intend to commercially 
harvest gag in 2012 and at a level above their reduced allocation. That 
is, a reduction in allocation can only lead to a reduction in landings 
if these entities intend to harvest at levels above their reduced 
allocation. Thus, for example, if these vessels intended to harvest gag 
in 2012 at a level equivalent to their 2012 allocation, and this 
harvest was in addition to, rather than in place of, their recent 
commercial fishing activities, the reduction in allocation could lead 
to a maximum loss of approximately .3 percent in gross revenue, which 
could in turn reduce net revenue and profits. Alternatively, losses in 
gross and net revenue could be due to these entities' inability to sell 
the allocations being lost under the proposed action, though this 
possibility presumes that a demand for these allocations exists.
    The 521 entities with gag shares that commercially harvested gag in 
2008 or 2009 earned approximately $71,000 (2008 dollars) in annual 
gross revenue on average in 2008 and 2009. Profit estimates for these 
vessels are not currently available. However, gag landings accounted 
for approximately 8 percent of these vessels' annual average gross 
revenue, and thus they are somewhat but not significantly dependent on 
revenue from gag landings. Under the proposed action to reduce the 
commercial gag quota to account for dead discards, these vessels' 2012 
gag allocations would be reduced from 1,022 lb (465 kg) to 879 lb (400 
kg), or 143 lb (65 lb) on average. As these vessels have been 
harvesting at levels near their 2010 allocation in recent years on 
average, this reduction in gag allocation is likely to lead to an 
equivalent reduction in gag landings and therefore gross revenue. Using 
the average 2008 price of $3.52 per lb, it is estimated that these 
vessels could lose nearly $503 (2008 dollars), or approximately .7 
percent, in annual gross revenue on average. Using the 2010 average 
price of $1.00 per lb of gag allocation, this loss in allocation would 
represent a loss of $503 (2008 dollars) in net revenue per entity. 
Since net revenue is assumed to be representative of profits for 
commercial vessels, these vessels are expected to experience a 
reduction in profits.
    However, 52 of these 521 vessels also received a bottom longline 
endorsement

[[Page 67662]]

in 2010. These particular vessels' average annual gross revenue was 
approximately $156,000 (2008 dollars) in 2008 and 2009, with gag 
landings accounting for approximately 8 percent of that gross revenue. 
These vessels are highly dependent on revenue from red grouper rather 
than gag landings. Under the proposed action to reduce the commercial 
gag quota, their allocation of gag in 2012 would decrease from 2,749 lb 
(1,250 kg) to 2,364 lb (1075 kg), or by 385 lb (175 kg). As these 
vessels have harvested at levels near their 2010 allocation in recent 
years on average, this reduction in gag allocation is likely to lead to 
an equivalent reduction in gag landings and therefore gross revenue. 
Using the average 2008 price of $3.52 per lb, it is estimated that 
these vessels could lose $1,355 (2008 dollars), or approximately .9 
percent, in annual gross revenue on average. Using the 2010 average 
price of $1.00 per lb of gag allocation, this loss in allocation would 
represent a loss of approximately $1,355 (2008 dollars) in net revenue 
per entity. Since net revenue is assumed to be representative of 
profits for commercial vessels, these vessels are expected to 
experience a reduction in profits.
    No additional economic effects would be expected to result from the 
revised SWG quota because the updated SWG quota simply reflects the 
reduction in the commercial gag quota, the effects of which have 
already been discussed.
    Given the proposed action to establish a rebuilding plan for gag, 
the conversion of red grouper allocation into multi-use allocation 
valid toward the harvest of red grouper or gag would be suspended under 
the proposed action to modify the percentages of red grouper and gag 
allocation that can be converted into multi-use allocation. Because red 
grouper is not under a rebuilding plan at this time, gag shareholders 
would be allowed to convert 8 percent of their gag allocation into 
multi-use allocation and thus no adverse economic effects are expected. 
However, minimal adverse economic effects are expected as a result of 
commercial fishing entities not being allowed to convert 4 percent of 
their red grouper allocation into multi-use allocation. Multi-use 
allocation that has been converted from red grouper allocation can only 
be used to possess, land, or sell gag after an entity's gag and gag 
multi-use allocation has been landed, sold, or transferred. Given the 
proposed reduction in the commercial gag quota due to dead discards, it 
is possible these entities will exhaust their gag and gag multi-use 
allocations. Gross revenue from gag landings is greater than gross 
revenue from an equivalent amount of red grouper landings because gag 
commands a relatively higher market price. Thus, gross revenue from 
commercial fishing and therefore profits per vessel could be slightly 
lower than if the conversion were allowed to continue.
    Under the proposed action to reduce the commercial size limit for 
gag from 24 inches (61 cm) to 22 inches (56 cm) total length, 
commercial fishing entities would be allowed to retain more and discard 
less of the gag they catch and thus are expected to be economically 
better off relative to the status quo. However, if commercial fishermen 
prefer to harvest larger gag due to a higher market demand for larger 
fish, then additional high-grading may be possible because the 
commercial sector is managed under the IFQ program. As such, few 
additional gag may be retained and thus the potential increases in 
gross revenue, net revenue, and profits per vessel are likely minimal.
    Establishing AMs is not expected to generate direct, adverse 
economic effects on commercial or for-hire entities. Direct, adverse 
economic effects would only occur if and when the AMs are actually 
triggered. This action would replace current AMs established under 
Amendment 30B to the FMP with the current IFQ program because an IFQ 
functions as an AM. This action would also add an overage adjustment 
and an in-season closure to the current AMs for the recreational sector 
when the gag or red grouper stocks are overfished and under a 
rebuilding plan. Because red grouper is not overfished or under a 
rebuilding plan, this action does not currently apply to the red 
grouper component of the reef fish fishery. The action to establish a 
recreational fishing season of July 1 through October 31 for gag is 
expected to restrain landings in the gag recreational sector well below 
its 2012 ACL, and in fact is intended and expected to constrain 
landings below the 2012 recreational annual catch target. In turn, the 
probability an overage adjustment or in-season closure will be required 
in 2013 is also minimal. Thus, the proposed action to establish new AMs 
for the commercial and recreational sectors of the gag, red grouper, 
and SWG component of the reef fish fishery is not expected to reduce 
profits for commercial or for-hire entities.
    Three alternatives, including the status quo, were considered for 
the action to establish a rebuilding plan for gag that would rebuild 
the gag stock to a level consistent with producing maximum sustainable 
yield in 10 years or less. In the absence of all fishing mortality, 
including bycatch mortality, the shortest possible time in which the 
gag stock can rebuild is 5 years. Under the National Standard 1 
guidelines, the maximum time allowed for rebuilding the gag stock is 10 
years. In the Generic ACL/AM Amendment, currently under development, 
the proposed ACLs are based on yields that are projected to rebuild the 
stock in 10 years, while the proposed ACTs are based on yields that are 
projected to rebuild the stock in 7 years.
    The first alternative, the status quo, would not have established a 
rebuilding plan for gag. The fishing mortality rate for gag has shown 
an increasing trend over time and fishing mortality rates in recent 
years are not consistent with rebuilding or maintaining the gag stock 
at its maximum sustainable yield level. Moreover, because the gag stock 
has been determined to be overfished and undergoing overfishing, this 
alternative does not comply with Magnuson-Stevens Act requirements 
regarding rebuilding plans.
    The second alternative would have established a rebuilding plan 
that would rebuild the gag stock to a level consistent with producing 
maximum sustainable yield in 7 years or less. Seven years is the 
estimated time to rebuild if the stock is managed at FOY 
rather than the rate corresponding to a 10-year rebuilding plan 
(Frebuilding). Although the yields under a 7-year rebuilding 
plan would eventually catch up to those for a 10-year plan, the initial 
catch targets in the early years would be smaller under a 7-year 
rebuilding plan relative to a 10-year rebuilding plan. Thus, this 
alternative would potentially imply more restrictive regulations and 
thus more adverse indirect economic effects in the short-term relative 
to the proposed action.
    The third alternative would have established a rebuilding plan that 
would rebuild the gag stock to a level consistent with producing 
maximum sustainable yield in 5 years. If this alternative were adopted, 
strong measures to reduce bycatch of gag in other fisheries would also 
need to be considered. Because a total elimination of discard mortality 
is unlikely to be achieved, this alternative would likely result in the 
stock being slightly under the rebuilding target at the end of 5 years. 
Most importantly, this alternative would require a complete closure of 
the gag component of the reef fish fishery for at least 5 years. 
Therefore, this alternative would eliminate all net revenue from the 
commercial sector and all consumer and producer surplus from the 
recreational sector for at least 5 years and, as such, would lead to 
the most restrictive regulations and, thus,

[[Page 67663]]

considerably greater adverse indirect economic effects in the short-
term relative to the proposed action.
    Four alternatives, including the status quo, were considered for 
the action to establish a recreational gag fishing season of July 1 
through October 31. The first alternative, the status quo, would 
maintain a year-round gag recreational fishing season, with the 
exception of the current February 1 through March 31 closed season for 
SWG. This alternative would be expected to result in a 14 percent 
reduction in gag removals relative to the 2006-2008 baseline and a 1 
percent increase in gag removals relative to the 2009 baseline. As 
such, this alternative does not achieve the necessary reduction in 
removals to rebuild the gag stock, contrary to the Council's goals and 
objectives and Magnuson-Stevens Act requirements.
    The second alternative, which would establish a gag recreational 
season of September 16 through November 15, would reduce gag removals 
by 60 percent relative to the 2009 baseline, which exceeds the annual 
catch target reduction of 47 percent. Relative to the 2006-2008 
baseline, this alternative also reduces removals by 60 percent. 
Therefore, this alternative does not fully meet the annual catch target 
of 61 percent relative to the 2006-08 baseline, but does exceed the ACL 
and rebuilding yield reduction level of 53 percent. This alternative is 
more conservative biologically than the proposed action, but only 
allows a 61-day fishing season as opposed to the 123-day fishing season 
allowed under the proposed action.
    The third alternative, which would establish a gag recreational 
season of January and April, would reduce removals by 52 percent, which 
exceeds the annual catch target reduction of 47 percent. Relative to 
the 2006-2008 baseline, this alternative reduces removals by 56 
percent. This alternative does not fully meet the annual catch target 
of 61 percent relative to the 2006-2008 baseline, but it does exceed 
the ACL and rebuilding yield reduction level of 53 percent. This 
alternative is similar to the second alterative in that it allows 61 
days of fishing, and thus is shorter than the 123-day fishing season 
allowed under the proposed action, but it splits the season into two 
segments to provide more fishing opportunities. Biologically, this 
alternative is as conservative as the proposed action.
    The fourth alternative would establish the same gag recreational 
season of July 1 through October 31 as the proposed action. However, 
rather than maintain the current 22 inch (56 cm) recreational minimum 
size limit, it would implement a 22-30 inch (56-76 cm) slot limit. 
Although this alternative would achieve a larger reduction in removals 
relative to the proposed action, a larger percentage of those removals 
would consist of dead discards. Furthermore, a portion of those 
additional dead discards would consist of larger fish above the slot 
limit. These larger fish produce more eggs in spawning season. Thus, 
this alternative could negatively impact the spawning potential ratio 
and in turn the rate of rebuilding.
    Two alternatives, including the status quo, were considered for the 
action to increase the recreational bag limit for red grouper from two 
fish to four fish. The first alternative, the status quo, would retain 
the current recreational bag limit for red grouper of two fish. The 
recreational ACL for red grouper has not been met in recent years. 
Recreational red grouper landings averaged less than 1 million lb 
(454,545 kg) between 2006 and 2009. With the planned increase in the 
red grouper TAC through a regulatory amendment currently under 
development, the recreational ACL would be increased from 1.51 million 
lb (686,364 kg) to 1.72 million lb (781,818 kg), which would create a 
larger difference between the ACL and the expected catch in 2012, and 
additional increases in the red grouper recreational ACL are planned 
through 2016. This alternative would not allow for-hire entities to 
increase their landings per trip even though the recreational sector's 
harvest has been and is expected to be well below its allocation. As 
such, opportunities to increase the economic value of red grouper 
harvests in the recreational sector would be unnecessarily foregone.
    The second alternative would increase the recreational bag limit 
for red grouper from two fish to three fish. This alternative would 
allow for-hire entities to increase their landings per trip, but would 
not enhance their opportunities to increase the economic value of red 
grouper harvests to the same extent as the proposed action. Such 
opportunities should be enhanced as much as possible given the large 
difference between the recreational sector's ACL and the expected catch 
under the current bag limit. Like the proposed action, this alternative 
includes an adaptive feedback mechanism that would adjust the bag limit 
if the recreational sector exceeds its ACL, though it would not be a 
two-stage process as under the proposed action.
    Two alternatives, including the status quo, were considered for the 
action to reduce the gag commercial quota to 86 percent of the ACT to 
account for dead discards. The first alternative, the status quo, would 
not adjust the gag commercial quota to account for dead discards. This 
alternative would set the gag commercial quota at the current ACT. The 
ACT assumes dead discards in the commercial sector will be reduced by 
the same proportion as landings. If this assumption is not valid, then 
total removals of gag will exceed the harvest levels projected in the 
assessment. The ACT provides a buffer against reaching the ACL, but 
this buffer may not be sufficient to offset increased removals due to 
dead discards.
    The second alternative would reduce the gag commercial quota to 47 
percent of the ACT to account for dead discards. This alternative 
represents the worst case scenario, under which dead discards are 
assumed to remain at their 2006-2008 level. Analyses associated with 
the 2011 gag interim rule indicated that, if dead discards remain at 
their 2006-2008 levels, the gag commercial quota would need to be 
reduced to 47 percent of the ACT in order to compensate for the 
increased removals. Although this alternative would provide the 
greatest allowance for dead discards and, thus, the highest likelihood 
of rebuilding the gag stock successfully, it is based on the unlikely 
assumption that dead discards will remain at their 2006-2008 levels. 
Longline vessels have historically landed about 34 percent of the 
commercial gag harvest. As a result of the longline endorsement 
requirements implemented in 2010, the number of reef fish longline 
vessels has decreased substantially. Of the 908 initial grouper/
tilefish shareholders in 2010, 293 vessels used bottom longline or trap 
gear for commercial reef fish harvesting purposes between 1999 and 
2007. However, only 62 of these vessels qualified for the bottom 
longline endorsement. Given the substantial reduction in the number of 
longline vessels, dead discards are expected to be considerably less 
now and in the future compared to their 2006-2008 levels. As such, 
reducing the gag commercial quota to 47 percent of the ACT would 
unnecessarily impose more significant economic and social impacts on 
commercial harvesters and associated communities relative to the 
proposed action.
    Two alternatives, including the status quo, were considered for the 
action to modify the percentage of red grouper allocation that can be 
converted into multi-use allocation if a rebuilding plan for gag is in 
effect. The first alternative, the status quo, would allow 4 percent of 
the red grouper allocation to be converted into multi-use allocation at 
the beginning of each year. Under this

[[Page 67664]]

alternative, the amount of red grouper multi-use allocation could 
exceed the available gag commercial quota, thereby leading to harvests 
that exceed the ACL. Such a result is contrary to the purposes of the 
action to establish a rebuilding plan for gag that would rebuild the 
gag stock to a level consistent with producing maximum sustainable 
yield in 10 years or less and is therefore inconsistent with Magnuson-
Stevens Act requirements and National Standard 1 guidance.
    The second alternative would base the amount of red grouper multi-
use allocation on the buffer between the gag ACL and ACT. Subsequent 
ACLs and ACTs may be set by the ACL/ACT control rule adopted in the 
Generic ACL/AM Amendment. Although a control rule has not been adopted 
yet, the alternatives currently under consideration would have little 
or no buffer for IFQ fisheries, which would render this alternative 
unusable. Furthermore, the gag ACL is set at the level where there is 
only a 50-percent probability of meeting the target to rebuild the gag 
stock in 10 years or less. Thus, this alternative will reduce the 
probability of the rebuilding plan being successful.
    One alternative, the status quo, was considered for the action to 
modify the percentage of gag allocation that can be converted into 
multi-use allocation if a rebuilding plan for red grouper is in effect. 
Under this alternative, 8 percent of the gag allocation would be 
converted into multi-use allocation. If a rebuilding plan for red 
grouper was necessary in the future, this alternative could result in 
red grouper harvests that would exceed the commercial ACL in the 
future, which would in turn trigger AMs and reduce the ability of the 
red grouper stock to rebuild.
    Three alternatives, including the status quo, were considered for 
the action to reduce the commercial gag minimum size limit from 24 
inches (61 cm) to 22 inches (56 cm) in TL. The first alternative, the 
status quo, would maintain the commercial gag minimum size limit at 24 
inches (61 cm) TL. The size at 50 percent female maturity is 
approximately 24 inches (61 cm) TL. Under this alternative, regulatory 
discards due to the minimum size limit would continue at the current 
rate, which is contrary to the Council's goal of reducing gag discards.
    The second alternative would reduce the commercial gag minimum size 
limit from 24 inches (61 cm) to 20 inches (51 cm) TL. Until a 
commercial fisherman's IFQ allocation is reached, this alternative is 
expected to reduce total gag discards by 62 percent for the vertical 
line component of the commercial sector and by 47.2 percent for the 
longline component. At the same time, the number of gag needed to fill 
an IFQ allocation is expected to increase by 29.7 percent for the 
vertical line component and by 0.9 percent for the longline component. 
This alternative has a greater likelihood of creating a price 
differential by size, which would in turn likely result in additional 
high-grading as fishermen attempt to maximize the economic return on 
their IFQ shares. Additional high-grading would lead to higher rather 
than lower levels of gag discards, which is contrary to the Council's 
goals.
    The third alternative would eliminate the minimum size limit and 
thus would effectively require all commercially caught gag be retained 
regardless of size. As a result, this alternative also effectively 
requires that each commercial fisherman possess sufficient gag 
allocation to cover all harvest of gag. Grouper sizes in the commercial 
sector have been recorded as small as 11 inches (28 cm) prior to the 
implementation of size limits, but the numbers landed are few below 18 
inches (46 cm). At a minimum size limit of 18 inches (46 cm), the 
expected reduction in total gag discards is 79.9 percent for the 
vertical line component and 66.7 percent for the longline component. At 
the same time, the increase in number of gag needed to fill an 
individual's allocation of gag is expected to be 38.2 percent for the 
vertical line component and 1.3 percent for the longline component. At 
minimum size limits less than 18 inches (46 cm), these values will 
change little because both gears become less selective for gag at 
smaller sizes. To the extent a market demand for larger fish exists, 
this alternative is likely to create a price differential for larger 
size fish. Given the limited amount of gag allocation expected to be 
distributed under the proposed gag commercial quota, this alternative 
could encourage high-grading by commercial fishermen, which would lead 
to higher rather than lower levels of gag discards, contrary to the 
Council's goals.
    Four alternatives, including the status quo, were considered for 
the action to expand the current time and area closures off the west 
coast of Florida. The first alternative would expand the current closed 
areas of Madison-Swanson and the Edges by approximately 70 square miles 
(181 square km). Four options were considered under this alternative. 
The first option would prohibit all fishing from November 1 through 
April 30, but allow surface trolling from May 1 through October 31. The 
second option would prohibit all fishing from November 1 through April 
30, but allow all fishing from May 1 through October 31. The third 
option would prohibit all fishing from January 1 through April 30, but 
allow all fishing from May 1 through December 31. The fourth option 
would prohibit all fishing year-round. The percentage of gag and red 
grouper commercial landings coming from this area ranges from 0.55 
percent for gag and 0.06 percent of red grouper under the third option 
to 1.25 percent and 0.39 percent for gag and red grouper respectively 
under fourth option. These numbers indicate it is unlikely that gag and 
particularly red grouper are being targeted in this area. Thus, the 
expected reduction in gag bycatch is relatively small and, thus, so are 
the biological benefits.
    The second alternative would expand the current closed areas of 
Madison-Swanson and the Edges by approximately 244 square miles (632 
square km). Four options were considered under this alternative. The 
first option would prohibit all fishing from November 1 through April 
30, but allow surface trolling from May 1 through October 31. The 
second option would prohibit all fishing from November 1 through April 
30, but allow all fishing from May 1 through October 31. The third 
option would prohibit all fishing from January 1 through April 30, but 
allow all fishing from May 1 through December 31. The fourth option 
would prohibit all fishing year-round. Gag bycatch is expected to 
increase as a result of the proposed action to reduce the gag 
commercial quota and the resulting reduction in the gag to red grouper 
quota ratio. The percentage of gag and red grouper commercial landings 
coming from this area ranges from 3.23 percent for gag and 0.26 percent 
of red grouper under the third option to 5.92 percent and 0.93 percent 
for gag and red grouper respectively under fourth option. If this 
alternative was selected, by limiting where recreational fishermen may 
fish, the adverse economic and social effects incurred as a result of 
the proposed recreational fishing season for gag would be amplified, 
particularly under the fourth option. Furthermore, the Council 
determined that these additional adverse economic and social effects on 
the recreational sector outweighed the biological benefits to the gag 
stock.
    The third alternative would modify the seasonal closure dates of 
The Edges 40 fathom contour area, which is approximately 390 square 
miles (1,010 square km) in size and currently

[[Page 67665]]

prohibits all fishing from January 1 through April 30 and allows all 
fishing from May 1 through December 31. Four options were also 
considered under this alternative. The first option would prohibit all 
fishing from November 1 through April 30, but allow surface trolling 
from May 1 through October 31. The second option would prohibit all 
fishing from November 1 through April 30, but allow all fishing from 
May 1 through October 31. The third option would prohibit all fishing 
from January 1 through April 30, but allow all fishing from May 1 
through December 31. The fourth option would prohibit all fishing year-
round. This alternative would close a larger area than the other 
alternatives that would expand the existing closures. Because The Edges 
40 fathom contour area is relatively large, the percentage of gag and 
red grouper commercial landings coming from it is greater than under 
the other alternatives that would expand the existing closures, ranging 
from 4.13 percent for gag and 0.57 percent of red grouper under the 
third option to 8.92 percent and 2.41 percent for gag and red grouper 
respectively under fourth option. Thus, the expected reduction in gag 
bycatch is greater than under the other alternatives that would expand 
the existing time/area closures. If this alternative was selected, by 
limiting where recreational fishermen may fish, the adverse economic 
and social effects incurred as a result of the proposed recreational 
fishing season for gag would be amplified, particularly under the 
fourth option. Furthermore, the Council determined that these 
additional adverse economic and social effects on the recreational 
sector outweighed the biological benefits to the gag stock.
    The fourth alternative would modify the seasonal closure dates for 
the Madison Swanson and Steamboat Lumps closed areas, which cover 
approximately 219 square miles (567 square km). At present, these 
closures prohibit all fishing from November 1 through April 30, but 
allow surface trolling for species other than reef fish from May 1 
through October 31. The first option would prohibit all fishing from 
November 1 through April 30, but allow surface trolling from May 1 
through October 31. The second option would prohibit all fishing from 
November 1 through April 30, but allow all fishing from May 1 through 
October 31. The third option would prohibit all fishing from January 1 
through April 30, but allow all fishing from May 1 through December 31. 
The fourth option would prohibit all fishing year-round. Because 
Madison Swanson and Steamboat Lumps have been closed to reef fish 
fishing for an extended time period, no data is available to determine 
how much harvesting activity may occur in these areas. As such, it is 
not possible to determine the potential effects from closing them for a 
longer time period and, thus, considerable uncertainty exists regarding 
those potential effects. However, it is highly likely the biological 
benefits to the gag stock would be minimal at best.
    One alternative, the status quo, was considered for the action to 
replace the current AMs for the commercial sector of gag, red grouper, 
and the SWG component of the reef fish fishery with the IFQ program. By 
retaining the current AMs, this alternative would close the commercial 
SWG sector if commercial landings of red grouper, gag, or SWG reach or 
are projected to reach their respective quotas. As such, these measures 
are inconsistent with the Council's management goals and objectives for 
the commercial sector of the reef fish fishery, as reflected by the IFQ 
program. Furthermore, concerns regarding the need for additional AMs 
appear to be unfounded given that, to this point, commercial landings 
have been less than the quotas for all individual species and species 
complexes managed under the IFQ program.
    Three alternatives, including the status quo, were considered for 
the action to establish additional AMs for the recreational harvest of 
gag and red grouper. The first alternative, the status quo, would 
retain the existing AMs for the recreational harvest of gag and red 
grouper. The current AMs do not include in-season management measures 
or an overage adjustment if either the gag or red grouper stocks are 
determined to be overfished. The gag stock is currently overfished. 
Thus, this alternative would allow the recreational ACLs to be exceeded 
before taking action, which could have short-term negative effects on 
the red grouper stock and particularly the gag stock. These additional 
AMs are recommended by the National Standard 1 guidance and are 
currently being considered by the Council for the management of other 
reef fish species in the Generic ACL amendment.
    The second alternative would add an overage adjustment to the 
existing AMs if gag or red grouper are determined to be overfished. 
This alternative would provide some benefit to the gag and red grouper 
stocks if they are under a rebuilding plan. The Council is proposing an 
action to establish a rebuilding plan for gag, and, thus, this 
alternative would be expected to apply immediately to the gag 
recreational sector. If the recreational ACL is exceeded, the overage 
adjustment would mitigate any damage done to a stock's recovery by 
reducing the ACL for the following year by the size of the overage or 
by some other level depending on what the best available science 
indicates will place the stock back on its rebuilding path. However, 
relative to the proposed action, this alternative would not allow in-
season closures as a result of projections indicating the recreational 
sector will exceed its red grouper or gag ACL. Thus, this alternative 
would allow the recreational ACLs to be exceeded before taking action, 
which could have short-term negative effects on the red grouper stock 
and particularly the gag stock.
    The third alternative would add in-season AMs to the existing AMs 
that would allow the gag or red grouper recreational fishing seasons to 
close early if necessary. This alternative would provide some benefit 
to the gag and red grouper stocks. However, this alternative does not 
add an overage adjustment as per National Standard 1 guidance. 
Moreover, by not requiring an overage adjustment, this alternative 
would allow overages to occur from one year to the next if the in-
season closures are implemented after the ACL has been exceeded. If 
these overages consistently occur over time, the cumulative effect 
could be sufficient to preclude rebuilding if a stock is under a 
rebuilding plan. As such, this alternative is not as beneficial to the 
red grouper and gag stocks as the proposed action.
    This proposed rule does not establish any new reporting, 
recordkeeping, or other compliance requirements.

List of Subjects in 50 CFR Part 622

    Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping 
requirements, Virgin Islands.

    Dated: October 28, 2011.
John Oliver,
Deputy Assistant Administrator for Operations, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR part 622 is 
proposed to be amended as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC

    1. The authority citation for part 622 continues to read as 
follows:

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

    2. In Sec.  622.20, paragraphs (b)(2)(iv)(A) and (B) are revised to 
read as follows:

[[Page 67666]]

Sec.  622.20  Individual fishing quota (IFQ) program for Gulf groupers 
and tilefishes.

* * * * *
    (b) * * *
    (2) * * *
    (iv) * * *
    (A) Red grouper multi-use allocation. (1) At the time the 
commercial quota for red grouper is distributed to IFQ shareholders, a 
percentage of each shareholder's initial red grouper allocation will be 
converted to red grouper multi-use allocation. Red grouper multi-use 
allocation, determined annually, will be based on the following 
formula:

Red Grouper multi-use allocation (in percent) = 100 * [Gag ACL - Gag 
commercial quota]/Red grouper commercial quota.

    (2) However, if gag is under a rebuilding plan, the percentage of 
red grouper multi-use allocation is equal to zero. Red grouper multi-
use allocation may be used to possess, land, or sell either red grouper 
or gag under certain conditions. Red grouper multi-use allocation may 
be used to possess, land, or sell red grouper only after an IFQ account 
holder's (shareholder or allocation holder's) red grouper allocation 
has been landed and sold, or transferred; and to possess, land, or sell 
gag, only after both gag and gag multi-use allocation have been landed 
and sold, or transferred.
    (B) Gag multi-use allocation. (1) At the time the commercial quota 
for gag is distributed to IFQ shareholders, a percentage of each 
shareholder's initial gag allocation will be converted to gag multi-use 
allocation. Gag multi-use allocation, determined annually, will be 
based on the following formula:

Gag multi-use allocation (in percent) = 100 * [Red grouper ACL -Red 
grouper commercial quota]/Gag commercial quota.

    (2) However, if red grouper is under a rebuilding plan, the 
percentage of red grouper multi-use allocation is equal to zero. Gag 
multi-use allocation may be used to possess, land, or sell either gag 
or red grouper under certain conditions. Gag multi-use allocation may 
be used to possess, land, or sell gag only after an IFQ account 
holder's (shareholder or allocation holder's) gag allocation has been 
landed and sold, or transferred; and to possess, land, or sell red 
grouper, only after both red grouper and red grouper multi-use 
allocation have been landed and sold, or transferred.
* * * * *
    3. In Sec.  622.34, paragraph (v) is revised to read as follows:


Sec.  622.34  Gulf EEZ seasonal and/or area closures.

* * * * *
    (v) Seasonal closure of the recreational sector for gag. The 
recreational sector for gag, in or from the Gulf EEZ, is closed from 
January 1 through June 30 and November 1 through December 31 each year. 
During the closure, the bag and possession limit for gag in or from the 
Gulf EEZ is zero.
* * * * *
    4. In Sec.  622.37, the heading of paragraph (d)(2)(iii) is revised 
and paragraph (d)(2)(v) is added to read as follows:


Sec.  622.37  Size limits.

* * * * *
    (d) * * *
    (2) * * *
    (iii) Black grouper-- * * *
* * * * *
    (v) Gag--22 inches (55.9 cm), TL.
* * * * *
    5. In Sec.  622.39, the first sentence in paragraph (b)(1)(ii) is 
revised to read as follows:


Sec.  622.39  Bag and possession limits.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Groupers, combined, excluding goliath grouper and Nassau 
grouper--4 per person per day, but not to exceed 1 speckled hind or 1 
warsaw grouper per vessel per day, or 2 gag per person per day. * * *
* * * * *
    6. In Sec.  622.42, paragraphs (a)(1)(iii)(A) and (B) and paragraph 
(a)(1)(vi) are revised to read as follows:


Sec.  622.42  Quotas.

    (a) * * *
    (1) * * *
    (iii) * * *
    (A) SWG combined--(1) For fishing year 2012--6.347 million lb 
(2.879 million kg).
    (2) For fishing year 2013--6.648 million lb (3.015 million kg).
    (3) For fishing year 2014--6.875 million lb (3.118 million kg).
    (4) For fishing year 2015 and subsequent fishing years--7.069 
million lb (3.206 million kg).
    (B) Gag. (1) For fishing year 2012--0.567 million lb (0.257 million 
kg).
    (2) For fishing year 2013--0.708 million lb (0.321 million kg).
    (3) For fishing year 2014--0.835 million lb (0.378 million kg).
    (4) For fishing year 2015 and subsequent fishing years--0.939 
million lb (0.426 million kg).
* * * * *
    (vi) Gray triggerfish--106,000 lb (48,081 kg), round weight.
* * * * *
    7. In Sec.  622.49, the section heading, the headings and first 
sentences of paragraphs (a)(1)(i) and (ii), the heading and first and 
last sentences in paragraph (a)(2)(i), paragraph (a)(2)(ii), and 
paragraphs (a)(3), (a)(4), and (a)(5) are revised to read as follows:


Sec.  622.49  Annual Catch Limits (ACLs) and Accountability measures 
(AMs).

    (a) * * *
    (1) * * *
    (i) Commercial sector. If commercial landings, as estimated by the 
SRD, reach or are projected to reach the applicable quota specified in 
Sec.  622.42(a)(1)(v), the Assistant Administrator for Fisheries, NOAA, 
(AA) will file a notification with the Office of the Federal Register 
to close the commercial sector for the remainder of the fishing year. * 
* *
    (ii) Recreational sector. If recreational landings, as estimated by 
the SRD, reach or are projected to reach the applicable quota specified 
in Sec.  622.42(a)(2)(ii), the AA will file a notification with the 
Office of the Federal Register to close the recreational sector for the 
remainder of the fishing year. * * *
    (2) * * *
    (i) Commercial sector. If commercial landings, as estimated by the 
SRD, reach or are projected to reach the applicable quota specified in 
Sec.  622.42(a)(1)(vi), the AA will file a notification with the Office 
of the Federal Register to close the commercial sector for the 
remainder of the fishing year. * * * The commercial ACL for 2010 and 
subsequent fishing years is 138,000 lb (62,596 kg).
    (ii) Recreational sector. If recreational landings, as estimated by 
the SRD, exceed the ACL, the AA will file a notification with the 
Office of the Federal Register reducing the length of the following 
recreational fishing season by the amount necessary to ensure 
recreational landings do not exceed the recreational target catch for 
that following fishing year. The recreational ACL for 2010 and 
subsequent fishing years is 457,000 lb (207,291 kg). The recreational 
target catch level for 2010 and subsequent fishing years is 405,000 lb 
(183,705 kg). Recreational landings will be evaluated relative to the 
ACL based on a moving multi-year average of landings, as described in 
the FMP.
    (3) Shallow-water grouper (SWG) combined. (i) Commercial sector. 
The IFQ program for groupers and tilefishes in the Gulf of Mexico 
serves as the accountability measure for commercial SWG. The commercial 
ACL for SWG, in gutted weight, for 2012 and subsequent

[[Page 67667]]

fishing years is 8.04 million lb (3.65 million kg).
    (ii) [Reserved]
    (4) Gag. (i) Commercial sector. The IFQ program for groupers and 
tilefishes in the Gulf of Mexico serves as the accountability measure 
for commercial gag. The applicable commercial ACLs for gag, in gutted 
weight, are 0.788 million lb (0.357 million kg) for 2012, 0.956 million 
lb (0.434 million kg) for 2013, 1.100 million lb (0.499 million kg) for 
2014, and 1.217 million lb (0.552 million kg) for 2015 and subsequent 
fishing years.
    (ii) Recreational sector. (A) Without regard to overfished status, 
if gag recreational landings, as estimated by the SRD, reach or are 
projected to reach the applicable ACLs specified in paragraph 
(a)(4)(ii)(D) of this section, the AA will file a notification with the 
Office of the Federal Register, to close the recreational sector for 
the remainder of the fishing year. On and after the effective date of 
such a notification, the bag and possession limit of gag in or from the 
Gulf EEZ is zero. This bag and possession limit applies in the Gulf on 
board a vessel for which a valid Federal charter vessel/headboat permit 
for Gulf reef fish has been issued, without regard to where such 
species were harvested, i.e. in state or Federal waters. In addition, 
the notification will reduce the length of the recreational SWG fishing 
season the following fishing year by the amount necessary to ensure gag 
recreational landings do not exceed the recreational target catch level 
in the following fishing year.
    (B) Without regard to overfished status, and in addition to the 
measures specified in paragraph (a)(4)(ii)(A), if gag recreational 
landings, as estimated by the SRD, exceed the applicable ACLs specified 
in paragraph (a)(4)(ii)(D), the AA will file a notification with the 
Office of the Federal Register to maintain the gag target catch level, 
specified in paragraph (a)(4)(ii)(D) of this section, for that 
following fishing year at the level of the prior year's target catch, 
unless the best scientific information available determines that 
maintaining the prior year's target catch is unnecessary. In addition, 
the notification will reduce the length of the recreational SWG fishing 
season the following fishing year by the amount necessary to ensure gag 
recreational landings do not exceed the recreational target catch level 
in the following fishing year.
    (C) In addition to the measures specified in paragraphs 
(a)(4)(ii)(A) and (B), if gag recreational landings, as estimated by 
the SRD, exceed the applicable ACL specified in paragraph (a)(4)(ii)(D) 
of this section, and gag are overfished, based on the most recent 
status of U.S. Fisheries Report to Congress, the AA will file a 
notification with the Office of the Federal Register, at or near the 
beginning of the following fishing year to reduce the ACL for that 
following year by the amount of the overage in the prior fishing year, 
unless the best scientific information available determines that a 
greater, lesser, or no overage adjustment is necessary.
    (D) The applicable recreational ACLs for gag, in gutted weight, are 
1.232 million lb (0.559 million kg) for 2012, 1.495 million lb (0.678 
million kg) for 2013, 1.720 million lb (0.780 million kg) for 2014, and 
1.903 million lb (0.863 million kg) for 2015 and subsequent fishing 
years. The recreational target catch levels for gag, in gutted weight, 
are 1.031 million lb (0.468 million kg) for 2012, 1.287 million lb 
(0.584 million kg) for 2013, 1.519 million lb (0.689 million kg) for 
2014, and 1.708 million lb (0.775 million kg) for 2015 and subsequent 
fishing years. Recreational landings will be evaluated relative to the 
ACL based on a moving multi-year average of landings, as described in 
the FMP.
    (5) Red grouper--(i) Commercial sector. The IFQ program for 
groupers and tilefishes in the Gulf of Mexico serves as the 
accountability measure for commercial red grouper. The applicable 
commercial ACL for red grouper, in gutted weight, for 2012 and 
subsequent fishing years is 6.03 million lb (2.735 million kg).
    (ii) Recreational sector. (A) Without regard to overfished status, 
if red grouper recreational landings, as estimated by the SRD, reach or 
are projected to reach the applicable ACL specified in paragraph 
(a)(5)(ii)(D) of this section, the AA will file a notification with the 
Office of the Federal Register, to close the recreational sector for 
the remainder of the fishing year. On and after the effective date of 
such a notification, the bag and possession limit of red grouper in or 
from the Gulf EEZ is zero. This bag and possession limit applies in the 
Gulf on board a vessel for which a valid Federal charter vessel/
headboat permit for Gulf reef fish has been issued, without regard to 
where such species were harvested, i.e. in state or Federal waters.
    (B) Without regard to overfished status, and in addition to the 
measures specified in paragraph (a)(5)(ii)(A), if red grouper 
recreational landings, as estimated by the SRD, exceed the applicable 
ACL specified in paragraph (a)(5)(ii)(D), the AA will file a 
notification with the Office of the Federal Register to maintain the 
red grouper target catch level, specified in paragraph (a)(5)(ii)(D) of 
this section, for that following fishing year at the level of the prior 
year's target catch, unless the best scientific information available 
determines that maintaining the prior year's target catch is 
unnecessary. In addition, the notification will reduce the bag limit by 
one fish and reduce the length of the recreational SWG fishing season 
the following fishing year by the amount necessary to ensure red 
grouper recreational landings do not exceed the recreational target 
catch level in the following fishing year. The minimum red grouper bag 
limit for 2014 and subsequent fishing years is two fish.
    (C) In addition to the measures specified in paragraphs 
(a)(5)(ii)(A) and (B), if red grouper recreational landings, as 
estimated by the SRD, exceed the applicable ACL specified in paragraph 
(a)(5)(ii)(D) of this section, and red grouper are overfished, based on 
the most recent Status of U.S. Fisheries Report to Congress, the AA 
will file a notification with the Office of the Federal Register, at or 
near the beginning of the following fishing year to reduce the ACL for 
that following year by the amount of the overage in the prior fishing 
year, unless the best scientific information available determines that 
a greater, lesser, or no overage adjustment is necessary.
    (D) The recreational ACL for red grouper, in gutted weight, is 1.90 
million lb (0.862 million kg) for 2012 and subsequent fishing years. 
The recreational target catch level for red grouper, in gutted weight, 
is 1.730 million lb (0.785 million kg) for 2012 and subsequent fishing 
years. Recreational landings will be evaluated relative to the ACL 
based on a moving multi-year average of landings, as described in the 
FMP.
* * * * *
[FR Doc. 2011-28421 Filed 11-1-11; 8:45 am]
BILLING CODE 3510-22-P