[Federal Register Volume 81, Number 125 (Wednesday, June 29, 2016)]
[Proposed Rules]
[Pages 42295-42307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15217]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 660

[Docket No. 150902809-6536-01]
RIN 0648-BF12


Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; 
Pacific Coast Groundfish Fishery; Widow Rockfish Reallocation in the 
Individual Fishing Quota Fishery

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

ACTION: Proposed rule; request for comments.

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SUMMARY: In January 2011, NMFS implemented the trawl rationalization 
program, a type of catch share program, for the Pacific coast 
groundfish fishery's limited entry trawl fleet, which includes an 
individual fishing quota program for limited entry trawl participants. 
At the time of implementation, the widow rockfish stock was overfished 
and quota shares were allocated to quota share permit owners in the 
individual fishing quota program using an overfished species formula. 
Now that the widow rockfish stock has been rebuilt, NMFS proposes to 
reallocate quota shares to initial recipients based on a target species 
formula that will more closely represent the fishing history of permit 
owners when widow rockfish was a targeted species. Through this rule, 
NMFS also proposes to allow the trading of widow rockfish quota shares, 
set a deadline for divestiture in case the reallocation of widow 
rockfish puts any QS permit owner over an accumulation limit, and 
remove the daily vessel limit for widow rockfish since it is no longer 
an overfished species.

DATES: Comments on this proposed rule must be received on or before 
July 29, 2016.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2016-0037, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to

[[Page 42296]]

www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2016-0037, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to William W. Stelle, Jr., 
Regional Administrator, West Coast Region, NMFS, 7600 Sand Point Way 
NE., Seattle, WA 98115-0070; Attn: Sarah Towne.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous).

FOR FURTHER INFORMATION CONTACT: Sarah Towne, 206-526-4140, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    In January 2011, NMFS implemented a trawl rationalization program, 
which is a catch share program, for the Pacific coast groundfish 
limited entry trawl fishery. The program was implemented through 
Amendments 20 and 21 to the Pacific Coast Groundfish Fishery Management 
Plan and the corresponding implementing regulations at 50 CFR part 660. 
Amendment 20 established the trawl rationalization program that 
consists of: an individual fishing quota (IFQ) program for the 
shorebased trawl fleet (including whiting and nonwhiting sectors), and 
cooperative programs for the at-sea mothership and catcher/processor 
trawl fleets (whiting only). Amendment 21 set long-term allocations for 
the limited entry trawl sectors of certain groundfish species.
    In the IFQ fishery, NMFS initially allocated quota shares (QS) 
based on allocation formulas developed through the Pacific Fishery 
Management Council (Council). Target species QS was allocated using 
limited entry trawl permit catch history. Overfished species QS was 
allocated based on QS of 11 target species, area of catch based on 
logbook data, and average bycatch ratios from observer data. The widow 
rockfish stock was overfished at the time of initial allocation, so 
widow rockfish QS was allocated to QS permit owners using the 
overfished species formula.
    Amendment 20 states that when an overfished species is rebuilt, 
there may be a reallocation of QS to facilitate the reestablishment of 
historic fishing opportunities. In its May 2012 Status of the Stocks 
Report, NMFS officially declared widow rockfish rebuilt. Based on the 
2011 stock assessment results, which indicated that widow was rebuilt, 
the Council decided that it would consider a reallocation of widow 
rockfish QS. In June 2012 QS for all species was not yet transferrable, 
but the Council placed a moratorium on the future transfer of widow 
rockfish QS until the reallocation could be considered, to protect 
permit owners from trading an asset that the Council might 
redistribute. In November 2014 the Council adopted a range of 
alternatives for widow rockfish QS reallocation, and in April 2015 made 
a final recommendation to NMFS to reallocate widow rockfish using a 
modified target species formula.
    Accumulation limits in the IFQ program cap the amount of QS or 
individual bycatch quota (IBQ) that a person, individually or 
collectively, may own or control (QS and IBQ control limits), and set 
limits on the amount of quota pounds (QP) that a vessel may catch or 
hold in its vessel account during the year (annual vessel limits). 
Overfished species such as widow rockfish also have QP vessel limits 
(also called daily limits) that restrict the amount of available 
overfished species QP that a vessel account can hold on any given day.

Proposed Action

    NMFS proposes this rule to: (1) Reallocate widow rockfish QS in the 
shorebased IFQ fishery to more closely reflect historic target fishing 
opportunities; (2) remove the moratorium on widow QS trading once 
reallocation and any appeals are completed; (3) set a divestiture 
deadline in case the reallocation puts any QS permit owner over the 
widow rockfish QS control limit or the aggregate nonwhiting control 
limit; and (4) remove the overfished species daily vessel limit for 
widow rockfish that restricts the amount of available QP that any 
vessel owner can hold on a given day. Each of these proposed actions is 
described in further detail below.

Widow Rockfish Reallocation

    In 2011, NMFS initially allocated QS for 29 different species to 
limited entry trawl permit owners in the form of a new QS permit and 
associated online account (lingcod was later subdivided into two areas, 
so there are currently 30 IFQ species). Each year NMFS allocates QPs to 
QS permit owners in their online accounts, based on the amount of QS 
each permit owner holds and the current sector allocation. QS permit 
owners must transfer these pounds to a vessel account in order for them 
to be fished, and when a vessel goes out fishing in the IFQ program, 
the landings and discards are debited against their vessel account much 
like a check being debited against a checking account. In addition to 
transferring annual pounds to vessel accounts, QS permit owners can 
also permanently transfer shares between QS accounts (for all species 
except widow rockfish, pending the widow rockfish reallocation). When a 
QS permit owner transfers QS, they are permanently transferring their 
ability to access and use that percentage of the annual sector 
allocation. For example, if QS permit owner A sold all of their 
sablefish South of 36[deg] N to permit owner B, permit owner A would no 
longer be allocated any sablefish South of 36[deg] N. QPs in future 
years.
    The QS and IBQ that was initially allocated in 2011 was calculated 
in four different groups, with four different allocation formulas: 21 
target species in ``Group 1;'' 6 incidentally caught overfished 
species, including widow rockfish, in ``Group 2;'' canary rockfish--an 
incidentally-caught overfished species calculated using a different 
formula than Group 2 species--in ``Group 3;'' and Pacific halibut IBQ 
in ``Group 4.''
    The widow rockfish stock was overfished at the time of initial 
allocation, and therefore widow QS was calculated using a Group 2 
formula. Because the Group 2 formula was based on the amount of target 
species (Group 1 species) QS the permit owner received, the Group 2 QS 
allocations purposely did not reflect the historical fishing efforts of 
fishermen who may have targeted those Group 2 species before they 
became overfished; instead the goal was to address the QS recipient's 
need to cover incidental catch of those overfished species based on 
their allocations of target species.
    Consistent with Amendment 20, and at the urging of some fishermen 
who were interested in a redistribution of widow rockfish QS to reflect 
target history instead of bycatch needs, the Council adopted a range of 
widow reallocation alternatives for consideration in November 2014, 
including: Alternative 1--status quo (no reallocation); Alternative 2--
a reallocation based on the Group 1 species formula used at the time of 
initial allocation, with two suboptions

[[Page 42297]]

to determine the split of widow rockfish QS between whiting and 
nonwhiting trips; Alternative 3--a reallocation based on nonwhiting 
groundfish revenue as a basis for recent participation; and Alternative 
4--a reallocation that was a mix between Alternatives 1 and 2, where a 
portion of widow QS would not be reallocated, and a portion would be 
reallocated using the formula from Alternative 2. In April 2015, the 
Council selected the midpoint between the two Alternative 2 suboptions 
to establish a final alternative, Alternative 5.
    In coming to its final preferred alternative, Alternative 5, the 
Council took into account the expected impacts of each alternative on 
harvesters, processors, workers, investments, and communities, using 
the most recent data available, as reflected in the environmental 
assessment. The Council considered the geographic distribution of 
impacts among the communities in Washington, Oregon, and California. 
The Council chose to blend the Alternative 2 suboptions, which set 
proportions for reallocating widow rockfish based on whiting and 
nonwhiting trips, to balance impacts to the whiting and nonwhiting 
fisheries. Of all the alternatives, the Council's final preferred 
alternative moves the most directly toward reestablishing the targeted 
widow rockfish fishery and is therefore expected to better achieve 
optimum yield and more immediately benefit struggling communities.
    The proposed action would reallocate widow rockfish QS to 
individual QS permit owners in the IFQ program using the formula the 
Council selected in its final preferred alternative. This formula is 
very similar to the Group 1 species calculation that was initially used 
to allocate target species QS in 2011. Specifically, NMFS would 
reallocate widow rockfish in two parts: One portion based on the 
history of permits retired in the 2003 buyback program, divided equally 
among qualified limited entry trawl permits, and the other portion 
based on widow rockfish landings history. NMFS would continue to hold 
10 percent of the total widow QS aside for the adaptive management 
program (AMP).
    For the portion of the reallocation resulting from the buyback, 
this rule proposes to use landings history from Federal limited entry 
groundfish permits that were retired through the 2003 Federal buyback 
program. NMFS would calculate the total buyback permit history as a 
percent of the total fleet history from 1994-2003, separately for 
whiting and nonwhiting trips. The whiting and nonwhiting QS pools 
associated with the buyback permits would be divided equally among all 
qualifying limited entry permits.
    For the portion of the reallocation resulting from widow rockfish 
landings history, this rule proposes to allocate one pool of QS based 
on the amount of Pacific whiting QS allocated for each permit, and the 
other pool based on the amount of widow rockfish caught on nonwhiting 
trips between 1994 and 2002, dropping the three lowest years. The 
Council's final preferred alternative excluded 2003 from nonwhiting 
trip history since widow rockfish was managed for rebuilding from late 
2002-2012, and the 2003 regulations aimed to eliminate widow targeting. 
Because only a few nonwhiting vessels made widow landings in 2003 and 
because the proposed reallocation formula calculates history based on a 
limited entry trawl permit's share of the fleet total for each year, a 
relatively small amount of widow landed by a single permit in 2003 
would constitute a large portion of the fleet total for that year and 
have a disproportionate effect on the widow QS reallocation. The 
Council decided that this disproportionate allocation would be unfair, 
and that fishermen who harvested widow in the nonwhiting fishery when 
it was overfished should not be rewarded with additional QS from those 
trips. The Council therefore excluded 2003 from the nonwhiting landings 
history portion of the allocation formula.
    The Council's final preferred alternative reallocates widow 
rockfish based on the Group 1 species calculation that was initially 
used to allocate target species QS in 2011. For the portion of the 
reallocation resulting from the buyback, the 1994-2003 period reflects 
the years used for Group 1 species at the time of initial allocation. 
For the portion of the reallocation resulting from widow rockfish 
landings history, 2003 was dropped from the nonwhiting pool for the 
reasons described above. 2003 landings would have a minimal impact on 
the amount of buyback QS allocated equally because all landings would 
be summed across all years and the buyback portion would be a subset of 
that total. Therefore no adjustment was made to the years used for the 
buyback portion (1994-2003). In contrast, 2003 landings would have a 
disproportionate impact on the portion of widow QS reallocated based on 
nonwhiting landings history because each permit's portion of landings 
is determined for each year. Instead of being spread equally (like 
buyback QS), including 2003 would allocate a disproportionate amount of 
widow QS directly to fishermen who targeted widow rockfish in the 
nonwhiting fishery when widow rockfish was overfished, as described 
above. For these reasons, 2003 history is included in all parts of the 
formula except the nonwhiting pool of the landings history portion.
    To determine how much of the total QS for each limited entry 
permit's widow rockfish landings history would be based on whiting 
trips versus nonwhiting trips, NMFS proposes to weigh each pool 
according to the initial issuance allocation formula specified in 
Amendment 21 and current regulations at Sec.  660.140(d)(8)(iv)(A)(10) 
(which anticipated widow rockfish rebuilding). The formula states that 
10 percent or 500 metric tons (mt), whichever is greater, will be 
allocated to the whiting sectors (shorebased and at-sea whiting), and 
the remaining amount will be allocated to the nonwhiting shorebased 
sector.
    By blending the two suboptions for Alternative 2, the Council 
established a one-time annual catch limit (ACL) value for widow of 
2,569 metric tons (mt) to use for the initial issuance allocation 
formula. This ACL value is needed to determine the harvest guideline 
amount, limited entry trawl allocation, and whiting and nonwhiting 
sector allocations. The whiting sector allocation is then subdivided 
into shorebased and at-sea sector allocations. The shorebased whiting 
and non-whiting allocations can then be compared in order to set the 
percentages NMFS would use to weigh whiting and nonwhiting history in 
the reallocation formula. Figure 1 below walks through the entire 
calculation from the ACL value to the shorebased whiting and nonwhiting 
percentages that NMFS proposes to use for widow reallocation, and a 
full description of the calculation follows.

[[Page 42298]]

[GRAPHIC] [TIFF OMITTED] TP29JN16.000

    NMFS proposes to use an ACL value of 2,569 mt, the midpoint of the 
two Alternative 2 suboptions as given in the Council's final preferred 
alternative, in order to determine how much of the total QS for each 
limited entry permit's widow rockfish landings history would be based 
on whiting trips versus nonwhiting trips. NMFS proposes to use a set-
aside amount of 120 mt, the same value used for the widow rockfish set-
aside in 2016 (in Table 2a to 50 CFR part 660, subpart C), to determine 
the harvest guidelines amount. NMFS would subtract the set-aside amount 
(120 mt) from the ACL (2,569 mt) in order to determine the harvest 
guideline amount (2,449 mt).
    Next, NMFS proposes to use a limited entry trawl/non-limited entry 
trawl split of 91 percent and 9 percent, respectively, the same split 
percentages used in the 2015-2016 harvest specifications (in Tables 1b 
and 2b to 50 CFR part 660, subpart C), to determine the limited entry 
trawl and non-limited entry trawl allocations. NMFS would multiply the 
harvest guidelines (2,449 mt) by 91 percent in order to determine the 
limited entry trawl allocation (2,228.59 mt), and by 9 percent in order 
to determine the non-limited entry trawl allocation (220.41 mt).
    As described above, NMFS proposes to use the initial issuance 
allocation formula specified in Amendment 21 and current regulations at 
Sec.  660.140(d)(8)(iv)(A)(10) to determine how much of the limited 
entry trawl allocation (2,228.59 mt) would be allocated to the whiting 
and nonwhiting sectors. The formula states that 10 percent or 500 mt, 
whichever is greater, will be allocated to the whiting sectors 
(shorebased and at-sea whiting), and the remaining amount will be 
allocated to the shorebased nonwhiting sector. 500 mt is greater than 
10 percent of the limited entry trawl allocation (222.859 mt), so NMFS 
would allocate 500 mt to the whiting sectors. The remaining amount of 
the limited entry trawl allocation, 1,728.59 mt, would be allocated to 
the shorebased nonwhiting sector.
    NMFS proposes to further divide the whiting allocation into 
shorebased and at-sea whiting sector allocations using a split of 42 
percent and 58 percent, respectively, as specified in Amendment 21 and 
current regulations at Sec.  660.55(f)(2). NMFS would allocate 42 
percent of 500 mt (210 mt) to the shorebased whiting sector, and 58 
percent of 500 mt (290 mt) to the at-sea whiting sectors.
    Next, NMFS proposes to combine the shorebased whiting and 
nonwhiting allocations to determine the total shorebased sector 
allocation. Based on the proposed calculation above, the 210 mt 
shorebased whiting sector allocation would be added to the 1,728.59 mt 
shorebased nonwhiting sector allocation, for a total shorebased sector 
allocation of 1,938.59 mt. The shorebased whiting sector allocation is 
10.833 percent of the total shorebased sector allocation (210 mt 
divided by 1,938.59 mt). The shorebased nonwhiting sector allocation is 
89.167 percent of the total shorebased sector allocation (1,728.59 mt 
divided by 1,938.59 mt). NMFS proposes to use these percentages to 
determine how much of the total QS for each limited entry permit's 
widow rockfish landings history would be based on whiting trips versus 
nonwhiting trips.
    Different ACLs cause different QS amounts to be allocated based on 
whiting and nonwhiting trips. The Alternative 2 suboptions, suboptions 
a and b, set two different ACL levels (2,000 mt and 3,790 mt, 
respectively), and the Council chose the midpoint of those suboptions 
(2,569 mt) in order to balance the impacts of widow rockfish 
reallocation to the shorebased whiting and nonwhiting fisheries. The 
midpoint ACL was chosen such that each limited entry trawl permit would 
receive QS based on whiting and nonwhiting landing trip history in an 
amount that is the midpoint of what their QS would have been under 
suboptions a and b (2,569 mt), rather than the midpoint between 2,000 
mt and 3,790 mt (2,895 mt). Table 1 below shows the whiting/nonwhiting 
split outcomes of each of the Alternative 2 suboptions, and the 
Council's final preferred alternative whiting/nonwhiting split, which 
is the midpoint of suboptions a and b.

[[Page 42299]]



                  Table 1--Whiting/Nonwhiting Split Suboptions and Final Preferred Alternative
                                            [Midpoint of suboptions]
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                                                                                                       Final
                                                                      Alt 2--         Alt 2--        preferred
                                                                    suboption a     suboption b    alternative--
                                                                       (mt)            (mt)        midpoint (mt)
----------------------------------------------------------------------------------------------------------------
ACL.............................................................           2,000           3,790           2,569
Set Asides......................................................             120             120             120
Harvest Guidelines (= ACL - set asides).........................           1,880           3,670           2,449
Limited Entry Trawl (= 91% of harvest guidelines)...............         1,710.8         3,339.7        2,228.59
Non-Limited Entry Trawl (= 9% of harvest guidelines)............           169.2           330.3          220.41
Whiting Sectors (= 10% of limited entry trawl allocation, or 500             500             500             500
 mt, whichever is greater)......................................
Shorebased Nonwhiting (remaining LE trawl)......................         1,210.8         2,839.7        1,728.59
At-Sea Whiting (= 58% of whiting sector allocation).............             290             290             290
Shorebased Whiting (= 42% of whiting sector allocation).........             210             210             210
Total Shorebased Allocation (= shorebased nonwhiting +                   1,420.8         3,049.7        1,938.59
 shorebased whiting)............................................
Whiting trip percentage for widow rockfish QS landings history..         14.780%          6.886%         10.833%
Nonwhiting trip percentage for widow rockfish QS landings                85.220%         93.114%         89.167%
 history........................................................
----------------------------------------------------------------------------------------------------------------

Eligibility

    QS permit owners are only eligible for a reallocation of widow 
rockfish if they are one of the 128 original QS permit owners who 
initially received a QS permit in 2011 based on limited entry trawl 
permit ownership. The 10 shorebased whiting processors who received 
initial QS permits with an allocation of Pacific whiting only are not 
eligible to receive reallocated widow rockfish QS. Those QS permit 
owners who have obtained a QS permit since 2014 when NMFS accepted new 
QS permit applications are not eligible to receive reallocated widow 
rockfish QS. However, since 2011, NMFS has received several U.S. court 
orders directing NMFS to transfer assets of a deceased person to a 
beneficiary. For those new QS permits to which NMFS administratively 
transferred widow rockfish QS based on a U.S. court order, NMFS will 
reallocate widow rockfish QS directly to these new QS permits because 
the shares were transferred through a legal process to a beneficiary. 
Limited entry trawl permit owners who did not apply for and receive a 
QS permit in 2011 are not eligible for reallocated widow rockfish QS; 
instead any history accruing to their permit will be redistributed 
among all other QS permit owners in proportion to their reallocated 
widow rockfish QS. If any QS permit owner submits a complete widow 
rockfish QS reallocation application but does not renew their QS permit 
and account for 2017, NMFS would still reallocate widow rockfish QS to 
the permit owner but, as stated currently in regulation, would not 
allocate QP for any species to a non-renewed permit. The permit owner 
could renew for the following year, which would enable him or her to 
receive and transfer QP.
    Past landings history associated with each limited entry trawl 
permit will accrue to the current QS permit owner who received initial 
QS for that limited entry permit, even if the limited entry trawl 
permit ownership has changed since 2011. For example, if the fictitious 
company XYZ Fishing owned two limited entry trawl permits in 2010: 
Permit A and Permit B, they would have received a QS permit (QS Permit 
#1) in 2011 with an initial issuance of QS that was based on the 
history of limited entry trawl Permits A and B. For the purposes of 
widow rockfish reallocation, the linkage between limited entry trawl 
Permits A and B and QS Permit #1 will remain in place, so that QS 
Permit #1 will be reallocated widow rockfish QS based on the history 
from limited entry trawl Permits A and B, regardless of who owns those 
limited entry trawl permits now. If XYZ Fishing sold both limited entry 
trawl permits in 2013, and therefore no longer owns them at the time 
widow rockfish is reallocated, the company would still receive the 
reallocated widow rockfish QS from limited entry Permits A and B to QS 
Permit #1.
    Based on the Council's action, NMFS proposes to reallocate widow 
rockfish based on the limited entry permit and QS permit relationship 
described above because the limited entry permit ownership was severed 
from the QS permit ownership at the time QS permits became effective in 
2011. After that time, limited entry trawl permits could be sold 
without any effect on the QS holdings, and QS percentages could be 
transferred without any effect on the limited entry permit. It is 
likely that QS permit owners would not have sold their limited entry 
trawl permits if they thought they would not receive the reallocated 
widow rockfish QS, and similarly, it is likely that any persons who 
purchased a limited entry trawl permit did not believe that they would 
receive any future QS as part of the purchase.
    For purposes of the widow rockfish reallocation calculation, NMFS 
intends to use landings data from the Pacific States Marine Fisheries 
Commission's PacFIN database. Although QS permit owners had the 
opportunity to review and revise their data in 2009, they may not have 
reviewed their widow rockfish history closely at that time, since widow 
rockfish was overfished and the QS allocation used a Group 2 formula 
that was not based on widow landings. NMFS wants to provide an 
opportunity for this review before we ``freeze'' the database for 
purposes of reallocation. ``Freezing'' the database means that NMFS 
intends to extract a dataset of the PacFIN database as of July 27, 
2016, and will use that dataset for the reallocation of widow rockfish. 
QS permit owners have been on notice since 2012 that widow rockfish 
might be reallocated, and have been able to review their fish ticket 
data since that time. NMFS also specified at the April 2016 Council 
meeting that we intended to use landings data from the PacFIN database 
to calculate the reallocated widow rockfish QS, and that we planned to 
provide permit owners the opportunity to review their widow catch data 
before we take a snapshot of the database for the purpose of 
reallocation.
    If QS permit owners in the shorebased trawl IFQ program have 
concerns over the accuracy of their widow rockfish data in the PacFIN 
database, they should contact the state in which they landed those fish 
to correct any errors. Any revisions to an entity's fish tickets would 
have to be approved by the state in order to be accepted, and must be

[[Page 42300]]

completed as of the date we freeze the database in order for the 
updated information to be used for the widow rockfish reallocation 
formula. State contacts are as follows: (1) Washington--Marjorie 
Morningstar (360-902-2854, [email protected]); (2) 
Oregon--Nadine Hurtado (503-947-6247, [email protected]); and 
(3) California--Marine Fisheries Statistical Unit (562-342-7130).

Application Process

    After NMFS freezes the database for the purpose of reallocation, 
and assuming the final rule publishes, we will mail prefilled 
applications and widow rockfish reallocation QS amounts to each 
eligible QS permit owner (calculated using the formula in the final 
rule). On the application, the applicant (the QS permit owner) must: 
(1) Indicate whether or not they accept NMFS' calculation of the 
reallocated widow rockfish QS for each limited entry trawl permit, (2) 
provide a written description of what part of the reallocation formula 
requires correction and credible information to support the request for 
correction if they do not accept the calculation, and (3) sign, date 
and declare that the information in the application is true, correct 
and complete. NMFS proposes that complete, certified applications would 
be due to NMFS West Coast Region on or before September 15, 2016, that 
mailed applications would be postmarked no later than September 15, 
2016, and that hand-delivered applications would be received no later 
than 5 p.m. on September 15, 2016. NMFS would not accept or review any 
applications postmarked or received in person after the application 
deadline, and any QS permit owner who does not submit an application 
would not be eligible to receive reallocated widow rockfish QS. NMFS 
would not accept applications by email. NMFS would redistribute the 
shares from any incomplete or non-submitted applications to all other 
QS permit owners who are eligible for a reallocation of widow rockfish 
QS in proportion to their reallocated widow QS amount.
    Assuming the rule will be final, for all complete, certified 
applications that were received by the application deadline date, NMFS 
would issue an initial administrative determination (IAD) on or before 
October 1, 2016. In the IAD, NMFS would inform the applicant whether or 
not their application for reallocated widow rockfish QS was approved. 
Applicants would have 60 calendar days from the date of the IAD to 
appeal the decision. If any appeals were received, NMFS would 
reallocate widow QS amounts in 2017 consistent with all of the IADs and 
await any action resulting from an appeal until 2018. More information 
is provided below about how the appeals process would affect the widow 
rockfish QS trading start date and the divestiture deadline.
    If an application is approved, the QS permit owner would receive a 
2017 QS permit showing the new widow rockfish QS amount in December 
2016, and the new QS percentage would show in the associated QS account 
on or about January 1, 2017. The 2017 IFQ sector allocation for widow 
rockfish would be allocated to QS accounts on or about January 1, 2017, 
based on the reallocated widow rockfish QS amount.

Widow Rockfish QS Trading

    Widow rockfish QS has not been transferrable at any time since the 
start of the IFQ program in 2011. The Council and NMFS initially placed 
a two-year moratorium on QS trading for all IFQ species in order to 
create stability during the transition to a new management system. In 
2012, the Council decided to reconsider the initial widow rockfish QS 
allocations, and halted future trading of widow rockfish QS until the 
reconsideration could be completed. In August 2012, NMFS delayed QS 
trading for all species for an additional year in response to unrelated 
litigation that required the Council and NMFS to reconsider the initial 
allocation of Pacific whiting. In 2013 NMFS put into regulation a 
moratorium for the transfer of widow rockfish QS until the reallocation 
could be considered and implemented, but QS trading for all other IFQ 
species began on January 1, 2014. Since that time, QS permit owners 
have been able to transfer QS for all species except widow rockfish.
    NMFS proposes to lift the moratorium on the transfer of widow 
rockfish QS once the reallocation is completed and any resulting 
appeals have been processed; successful appeals could affect all 
reallocation amounts. Under the proposed rule, once QS permit owners 
have their reallocated QS percentages, and can be sure those 
percentages would not change as the result of an appeal, permit owners 
could begin trading. If NMFS does not receive any appeals by the 
appeals deadline, we propose to lift the moratorium on widow rockfish 
QS trading for January 1, 2017. If NMFS receives any appeals by the 
deadline, we propose to lift the moratorium on widow rockfish QS 
trading for January 1, 2018, because that is the date when any appeal 
outcome that might cause a change in widow allocations would be 
finalized. NMFS proposes to announce the official start date of widow 
rockfish QS trading through a public notice in December 2016, once we 
are able to determine whether appeals have been submitted.

Deadline for Divestiture

    Control limits in the IFQ program cap the amount of QS or IBQ that 
a person, individually or collectively, may own or control. Amendment 
20 and implementing regulations set individual control limits for each 
of the 30 IFQ species, as well as an aggregate limit of 2.7 percent 
across nonwhiting species. The individual control limit for widow 
rockfish is 5.1 percent. Consistent with the trawl rationalization 
program, some QS permit owners were initially allocated an amount of QS 
and IBQ that exceeded one or more of the control limits, based on their 
catch history during the qualifying years. The regulations provided 
these QS permit owners an adjustment period to hold the excess shares, 
but required divestiture of excess QS by November 30, 2015, for all 
species except widow rockfish, because widow rockfish QS was being 
considered for reallocation and could not be traded.
    When NMFS reallocates widow rockfish, we propose to allocate the 
full amount the applicant qualifies for, even if it pushes the permit 
owner over the 5.1 percent control limit for widow, or the 2.7 percent 
nonwhiting aggregate limit. NMFS would allow the QS permit owner an 
adjustment period to hold the excess shares and divest, consistent with 
the process that was used during initial allocation in 2011. Should the 
reallocation of widow rockfish put any QS permit owner over a QS 
control limit, NMFS, based on the Council's recommendation, proposes to 
set a divestiture deadline of November 30 in the year widow rockfish QS 
becomes transferrable. If NMFS does not receive any appeals on the 
reallocation, widow QS would become transferrable on or about January 
1, 2017, and any QS permit owner who exceeded the control limit as the 
result of the reallocation would have until November 30, 2017, to 
divest of their excess holdings. If NMFS does receive one or more 
appeals, widow QS would become transferrable on or about January 1, 
2018, and any QS permit owner who exceeded the control limit as the 
result of the reallocation would have until November 30, 2018, to 
divest of their excess holdings. QS trading occurs between January 1 
through November 30 each year, but trading is halted in the month of

[[Page 42301]]

December so that NMFS can set QP allocations based on the static year-
end amount of QS and mail QS permits that are effective January 1 of 
the following year. This 11-month adjustment period would allow the 
permit owner to benefit from one year of holding excess QS, and from 
the sale or gifting of such an excess, but they would be required to 
divest of their excess in a timely manner, consistent with existing 
regulatory procedures.

Widow Rockfish Daily Vessel Limit

    Vessel limits in vessel accounts restrict the amount of QPs that 
any vessel can catch or hold. Annual QP vessel limits are a set 
percentage of the IFQ sector allocation, and NMFS calculates and 
publishes a table annually showing the quota pound equivalents. For 
example, the annual QP vessel limit for widow rockfish is 8.5 percent 
of the current year's sector allocation. In 2016, the IFQ sector 
allocation for widow rockfish is 3,131,931 pounds, so the maximum 
amount any vessel owner can catch or bring into their vessel account in 
2016 is 8.5 percent of the sector allocation, or 266,214 pounds. Unused 
QP vessel limits, also called ``daily vessel limits,'' only apply to 
overfished species and cap the amount of overfished species QPs any 
vessel account can have sitting available in their account on a given 
day. For example, the daily QP vessel limit for widow rockfish is 5.1 
percent, or 159,728 pounds in 2016, which is lower than the annual QP 
vessel limit. So if a vessel account owner held the full daily vessel 
limit amount (159,728 pounds) available in their account and then 
caught 20,000 pounds, they would have 139,728 available QPs and could 
bring in 20,000 more, up to the daily and annual vessel limit.
    The Council and NMFS established daily vessel limits to prevent 
hoarding of available overfished species QPs in any one vessel account, 
since the IFQ sector allocations of some overfished species are so low. 
Now that widow rockfish is rebuilt, and the ACL has increased, NMFS 
proposes to remove the daily vessel limit since daily vessel limits 
only apply to overfished species. NMFS would remove the daily vessel 
limit for widow rockfish only, and would not change widow's annual 
vessel limit or the vessel limit of any other species. This change 
would better reflect the status of widow rockfish as rebuilt, and allow 
fishermen to hold the full annual vessel limit at any time if they 
chose to do so, in line with every other non-overfished IFQ species.

Classification

    Pursuant to sections 304(b)(1)(A) and 305(d) of the Magnuson-
Stevens Act (MSA), the NMFS Assistant Administrator has determined that 
this proposed rule is consistent with the Pacific Coast Groundfish 
Fishery Management Plan, other provisions of the MSA, and other 
applicable law, subject to further consideration after public comment.
    The Council prepared an environmental assessment (EA) for this 
action. The draft EA is available on the Council's Web site at http://www.pcouncil.org/ or on NMFS' Web site at http://www.westcoast.fisheries.noaa.gov/fisheries/groundfish_catch_shares/rules_regulations/trawl_regulations_compliance_guides.html.
    NMFS is amending the supporting statement for the Pacific Coast 
groundfish trawl rationalization program permit and license information 
collection Office of Management and Business (OMB) Paperwork Reduction 
Act (PRA) requirements (OMB Control No. 0648-0620) to include an 
application form for widow rockfish reallocation. NMFS estimates the 
public reporting burden for this collection of information to average 
one hour per form, including the time for reviewing instructions, 
reviewing data and calculations for reallocated widow rockfish QS, and 
completing the form. NMFS requests any comments on the addition of the 
widow rockfish reallocation application form to the PRA package, 
including whether the paperwork would unnecessarily burden any QS 
permit owners.
    Pursuant to the procedures established to implement section 6 of 
Executive Order 12866, the Office of Management and Budget has 
determined that this proposed rule is not significant.
    This proposed rule was developed after meaningful collaboration, 
through the Council process, with the tribal representative on the 
Council. The proposed regulations have no direct effect on the tribes.
    NMFS prepared an initial regulatory flexibility analysis (IRFA) for 
this rule, as required by section 603 of the Regulatory Flexibility Act 
(RFA). The IRFA describes the economic impact that this proposed rule, 
if adopted, would have on small entities. A description of the action, 
why it is being considered, and the legal basis for this action are 
contained in the preamble and in the SUMMARY section of the preamble. A 
Regulatory Impact Review (RIR) was also prepared on the action and is 
included as part of the IRFA. A copy of the IRFA is available from NMFS 
(see ADDRESSES) and per the requirements of 5 U.S.C. 604(a), a summary 
of the IRFA follows:
    When an agency proposes regulations, the RFA requires the agency to 
prepare and make available for public comment an IRFA that describes 
the impact on small businesses, non-profit enterprises, local 
governments, and other small entities. The IRFA aids the agency in 
considering all reasonable regulatory alternatives that would minimize 
the economic impact on affected small entities.
    The Small Business Administration defines a ``small'' harvesting 
business as one with combined annual receipts of $11 million or less 
for all affiliated operations worldwide. For related fish-processing 
businesses, a small business is one that employs 750 or fewer persons 
for all affiliated operations worldwide.
    This rule affects 128 QS permit owners who have received widow 
quota shares. When renewing their QS permits, permit owners are asked 
if they considered themselves small businesses based on the SBA 
definitions of small businesses provided above. Based on their 
responses, NMFS estimates that there are 110 small businesses affected 
by this rule.
    In January 2011, NMFS implemented the trawl rationalization program 
(a catch share program) for the Pacific coast groundfish limited entry 
trawl fishery, which includes an individual fishing quota program for 
limited entry trawl participants. At the time of implementation, the 
widow rockfish stock was overfished and quota shares were allocated to 
quota share permit owners in the individual fishing quota program using 
an overfished species formula. Now that widow rockfish has been 
rebuilt, NMFS proposes to reallocate quota shares to initial recipients 
based on a target species formula that will more closely represent the 
fishing history of permit owners when widow rockfish was a targeted 
species. Through this rule NMFS also proposes to allow the trading of 
widow rockfish quota shares, set a deadline for divestiture in case the 
reallocation of widow rockfish puts any QS permit owner over an 
accumulation limit, and remove the daily vessel limit for widow 
rockfish since it is no longer an overfished species. The reallocation 
of widow rockfish and lifting of the moratorium are the major measures 
analyzed below. Setting the divestiture deadline is administrative in 
nature, while elimination of the daily limit is

[[Page 42302]]

already required because widow is no longer an overfished species.
    The Council adopted a range of widow rockfish reallocation 
alternatives for consideration in November 2014 including: Alternative 
1--status quo (no reallocation), Alternative 2--reallocate widow using 
same formula (Group I species formula) that was used for other target 
species at the at the time of initial allocation, Alternative 3--
reallocate widow based on nonwhiting groundfish revenue as a basis for 
recent participation, and Alternative 4--reallocate widow by blending 
Alternatives 1 and 2, where a portion of widow QS would not be 
reallocated, and a portion would be reallocated using the formula from 
Alternative 2. In April 2015, the Council selected Alternative 2 as its 
final preferred alternative, and blended two suboptions for the 
alternative into a final suboption-Alternative 5.
    In assessing these alternatives, the Council took into account 
expected impacts of each alternative on harvesters, processors, 
workers, investments, and communities, using the most recent data 
available, as reflected in the environmental assessment. The Council 
recognized its final decision as drawing a balance between impacts to 
the whiting and nonwhiting fishery, not allocating too much away from 
any one sector, re-establishing historic fisheries, and the geographic 
distribution of impacts among the communities in Washington, Oregon, 
and California. This action is part of an overall program designed to 
ensure that conservation objectives are met and is focused on 
mitigating some of the distributional effects of those conservation 
measures. As compared to Alternatives 3 or 4, Alternative 2 and the 
Council's final preferred alternative, Alternative 5, move most 
directly toward reestablishing the targeted widow rockfish fishery and 
is therefore expected to better achieve the OY and more immediately 
benefit struggling communities.
    The economic dimensions of the fishery are as follows. Annual widow 
rockfish ex-vessel revenues in the shorebased trawl sector ranged from 
$5 million to $6 million (inflation adjusted) in the mid-1990s. Annual 
ex-vessel revenues in the pre-trawl rationalization rebuilding era 
(2002-2010) averaged about $0.1 million. Since the start of trawl 
rationalization (2011-2014), annual ex-vessel values averaged $0.3 
million. (Widow rockfish was determined to be rebuilt in 2011 and was 
no longer managed under a rebuilding plan beginning in the 2013-2014 
biennial harvest specifications). Estimated widow catch has increased 
every year: in 2013, approximately 400 mt were caught; in 2014, 
approximately 650 mt were caught; and in 2015, about 840 mt were 
caught. With an ex-vessel price of $0.41 per pound, the total revenues 
earned in the 2015 fishery are about $760,000. The 2016 sector 
allocation for widow is similar to 2015, and recognizing past growth of 
the fishery, landings may reach 1,000 mt.
    Widow rockfish is just one of many species landed on the West 
Coast. During 2015, landings of groundfish, crab, salmon, and other 
species, generated $335 million in ex-vessel revenues. 2015 groundfish 
ex-vessel revenues were about $64 million with IFQ revenues estimated 
at $42 million. Widow rockfish ex-vessel revenues were about $760,000, 
constituting a very small percentage of total groundfish ex-vessel 
revenues.
    If the Council increases the 2017 ACL from 2,000 mt (No Action) to 
13,508 mt (Alternative 1), revenues could grow to $9.0 million if 
prices do not change, the number of non-whiting mid-water trawlers 
rapidly increases, and if processors could process the increased widow 
rockfish landings and find the proper markets. These changes would 
yield an increase of $23.1 million in total West Coast income impacts, 
and an increase of an estimated 320 jobs.
    This rulemaking proposes to reallocate widow rockfish QS and allow 
those shares to be traded. With trading, QS will flow to those QS 
holders that most efficiently can use the QS--by using the associated 
QP to support their own vessels, selling or leasing the QP to other 
vessels, or by selling the QS to others. At the fishery level, in the 
long run, the alternatives reviewed here will not have a major effect 
on the overall amount of fish landed and processed across all the 
groundfish fishing communities.
    At the individual quota share holder level, this rule affects the 
starting point by which QS is traded and the amounts that can be traded 
by individual QS holders. Depending on the alternative, the total 
amount of QS that is to be reallocated in the IFQ fishery ranges from 
0% (Alternative 1, Status Quo, Bycatch) to 28.2% (Alternative 5, 
Alternative 2 Midpoint). Based on ex-vessel price of $0.41 per pound, 
and projected sector allocations of 12,000 mt based on 2017 ACL of 
13,500 mt, and projected attainment rate of 80%, the annual value of 
the quota pounds associated with a potential transfer of 28.2% of the 
quota shares is about $2.5 million. Depending on the alternative, the 
potential transfer of QS among communities ranges from 0 to 18%. The 
annual value of quota pounds associated with QS being transferred is 
about $1.5 million based on the 2017 ACL.
    The proposed 2017-18 ACLs of 13,500 mt and 13,800 mt are six times 
higher than 2015-2016 ACLs. From a fishery-wide perspective, there 
should not be any negative impacts on communities, QS holders, or 
processors because of the increase in ACLs. This huge increase in the 
ACLs provides increased opportunities for all of these participants.
    However, with any reallocation scheme there are some that are 
negatively impacted. The maximum reduction for a QS holder under either 
Alternative 2 or 5 is about 1.9%. Based on 2015 revenues of $760,000, 
the QP associated with this reduction would have a value of $15,000. 
Under the 2017 ACL, estimated revenues are $9.0 million, and a loss of 
1.9% would be worth about $175,000. At an individual level, these two 
values represent maximum 2015 losses ($15,000) versus maximum potential 
future losses should the high ACL be implemented, prices stay constant, 
and 80 percent of the sector allocation be harvested ($175,000). Others 
will be positively impacted. The maximum increase for a QS holder under 
any alternative is about 2%.
    NMFS does not believe that small businesses as a class of QS 
holders will be negatively impacted by the proposed reallocation of 
widow rockfish QS. The reallocation options in large part decrease 
widow QS holdings for some small businesses while increasing QS 
holdings for other small businesses, based on historical reliance on 
widow rockfish as a target species. Trading of widow QS should also be 
beneficial to all small businesses as it gives these businesses the 
option to buy, sell, or lease their widow QS. Setting the divesture 
deadline gives any affected entities time to sell off their excess QS. 
Eliminating the no-longer-needed daily vessel limit for widow rockfish 
provides more flexibility to small businesses.

List of Subjects in 50 CFR Part 660

    Fisheries, Fishing, Indian fisheries.

    Dated: June 23, 2016.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR part 660 is 
proposed to be amended as follows:

[[Page 42303]]

PART 660--FISHERIES OFF WEST COAST STATES

0
1. The authority citation for part 660 continues to read as follows:

    Authority:  16 U.S.C. 1801 et seq., 16 U.S.C. 773 et seq., and 
16 U.S.C. 7001 et seq.

0
2. In Sec.  660.140:
0
a. Revise paragraphs (d)(3)(ii)(B)(2) and (d)(4)(v);
0
b. Add paragraph (d)(9); and
0
c. Revise paragraph (e)(4)(i) to read as follows:


Sec.  660.140  Shorebased IFQ Program.

* * * * *
    (d) * * *
    (3) * * *
    (ii) * * *
    (B) * * *
    (2) Transfer of QS or IBQ between QS accounts. Beginning January 1, 
2014, QS permit owners may transfer QS (except for widow rockfish QS) 
or IBQ to another owner of a QS permit, subject to accumulation limits 
and approval by NMFS. Beginning January 1, 2017 (if there are no 
appeals to the reallocation of widow rockfish), or January 1, 2018 (if 
there are appeals to the reallocation of widow rockfish), QS permit 
owners may transfer widow rockfish QS to another owner of a QS permit, 
subject to accumulation limits and approval by NMFS. NMFS will announce 
the QS transfer date for widow rockfish prior to January 1, 2017. QS or 
IBQ cannot be transferred to a vessel account. Owners of non-renewed QS 
permits may not transfer QS. QP in QS accounts cannot be transferred 
between QS accounts. NMFS will allocate QP based on the QS percentages 
as listed on a QS permit that was renewed during the previous October 1 
through November 30 renewal period. QS transfers will be recorded in 
the QS account but will not become effective for purposes of allocating 
QPs until the following year. QS or IBQ may not be transferred between 
December 1 through December 31 each year. Any QS transaction that is 
pending as of December 1 will be administratively retracted. NMFS will 
allocate QP for the following year based on the QS percentages as of 
December 1 of each year.
* * * * *
    (4) * * *
    (v) Divestiture. Accumulation limits will be calculated by first 
calculating the aggregate non-whiting QS limit and then the individual 
species QS or IBQ control limits. For QS permit owners (including any 
person who has ownership interest in the owner named on the permit) 
that are found to exceed the accumulation limits during the 
reallocation of widow rockfish QS, an adjustment period will be 
provided during which they will have to completely divest their QS or 
IBQ in excess of the accumulation limits. If NMFS identifies that a QS 
permit owner exceeds the accumulation limits in 2016 or beyond, the QS 
permit owner must divest of the QS or IBQ in excess of the accumulation 
limits according to the procedure provided under paragraph (d)(4)(v)(A) 
or (B) of this section. Owners of QS or IBQ in excess of the control 
limits may receive and use the QP or IBQ pounds associated with that 
excess, up to the time their divestiture is completed.
    (A) Divestiture and redistribution process in 2016 and beyond. Any 
person owning or controlling QS or IBQ must comply with the 
accumulation limits, even if that control is not reflected in the 
ownership records available to NMFS as specified under paragraphs 
(d)(4)(i) and (iii) of this section. If NMFS identifies that a QS 
permit owner exceeds an accumulation limit in 2016 or beyond for a 
reason other than the reallocation of widow rockfish, NMFS will notify 
the QS permit owner that he or she has 90 days to divest of the excess 
QS or IBQ. In the case that a QS permit owner exceeds the control limit 
for aggregate nonwhiting QS holdings, the QS permit owner may abandon 
QS to NMFS within 60 days of the notification by NMFS, using the 
procedure provided under paragraph (d)(4)(v)(C) of this section. After 
the 90-day divestiture period, NMFS will revoke all QS or IBQ held by a 
person (including any person who has ownership interest in the owner 
names on the permit) in excess of the accumulation limits following the 
procedures specified under paragraphs (d)(4)(v)(D) through (G) of this 
section. All abandoned or revoked shares will be redistributed to all 
other QS permit owners in proportion to their QS or IBQ holdings on or 
about January 1 of the following calendar year, based on current 
ownership records, except that no person will be allocated an amount of 
QS or IBQ that would put that person over an accumulation limit.
    (B) Divestiture and redistribution process for the reallocation of 
widow rockfish. Any person owning or controlling QS or IBQ must comply 
with the accumulation limits, even if that control is not reflected in 
the ownership records available to NMFS as specified under paragraphs 
(d)(4)(i) and (iii) of this section. If the reallocation of widow 
rockfish puts any QS permit owner over an accumulation limit, the QS 
permit owner will have until widow rockfish becomes transferrable to 
divest of their excess widow rockfish QS. In the case that a QS permit 
owner exceeds the control limit for aggregate nonwhiting QS holdings as 
the result of the reallocation of widow rockfish, the permit owner may 
abandon QS to NMFS by November 15 of the year widow rockfish becomes 
transferrable, using the procedure provided under paragraph 
(d)(4)(v)(C) of this section. After the widow rockfish reallocation 
divestiture period, NMFS will revoke all QS and IBQ held by a person 
(including any person who has ownership interest in the owner names on 
the permit) in excess of the accumulation limits following the 
procedures specified under paragraphs (d)(4)(v)(D) through (G) of this 
section. All abandoned or revoked shares will be redistributed to all 
other QS permit owners in proportion to their QS or IBQ holdings on or 
about January 1 of the following calendar year, based on current 
ownership records, except that no person will be allocated an amount of 
QS or IBQ that would put that person over an accumulation limit.
    (C) Abandonment of QS. QS permit owners that are over the control 
limit for aggregate nonwhiting QS holdings may voluntarily abandon QS 
if they notify NMFS in writing by the applicable deadline specified 
under paragraph (d)(4)(v)(A) or (B) of this section. The written 
abandonment request must include the following information: QS permit 
number, IFQ species, and the QS percentage to be abandoned. Either the 
QS permit owner or an authorized representative of the QS permit owner 
must sign the request. QS permit owners choosing to utilize the 
abandonment option will permanently relinquish to NMFS any right to the 
abandoned QS, and the QS will be redistributed as described under 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any abandoned shares.
    (D) Revocation. NMFS will revoke QS from any QS permit owner who 
exceeds an accumulation limit after the divestiture deadline specified 
under paragraph (d)(4)(v)(A) or (B) of this section. NMFS will follow 
the revocation approach summarized in the following table and explained 
under paragraphs (d)(4)(v)(E) through (G) of this section:

[[Page 42304]]



------------------------------------------------------------------------
 If, after the divestiture deadline, a
     QS permit owner exceeds . . .                  Then . . .
------------------------------------------------------------------------
An individual species control limit in   NMFS will revoke excess QS at
 one QS permit.                           the species level.
An individual species control limit      NMFS will revoke QS at the
 across multiple QS permits.              species level in proportion to
                                          the amount the QS percentage
                                          from each permit contributes
                                          to the total QS percentage
                                          owned.
The control limit for aggregate          NMFS will revoke QS at the
 nonwhiting QS holdings.                  species level in proportion to
                                          the amount of the aggregate
                                          overage divided by the
                                          aggregate total owned.
------------------------------------------------------------------------

    (E) Revocation of excess QS or IBQ from one QS permit. In cases 
where a person has not divested to the control limits for individual 
species in one QS permit by the deadline specified under paragraph 
(d)(4)(v)(A) or (B) of this section, NMFS will revoke excess QS at the 
species level in order to get that person to the limits. NMFS will 
redistribute the revoked QS following the process specified in 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any revoked shares.
    (F) Revocation of excess QS or IBQ from multiple QS permits. In 
cases where a person has not divested to the control limits for 
individual species across QS permits by the deadline specified under 
paragraph (d)(4)(v)(A) or (B) of this section, NMFS will revoke QS at 
the species level in proportion to the amount the QS percentage from 
each permit contributes to the total QS percentage owned. NMFS will 
redistribute the revoked QS following the process specified in 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any revoked shares.
    (G) Revocation of QS in excess of the control limit for aggregate 
nonwhiting QS holdings. In cases where a QS permit owner has not 
divested to the control limit for aggregate nonwhiting QS holdings by 
the deadline specified under paragraph (d)(4)(v)(A) or (B) of this 
section, NMFS will revoke QS at the species level in proportion to the 
amount of the aggregate overage divided by the aggregate total owned. 
NMFS will redistribute the revoked QS following the process in 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any revoked shares.
* * * * *
    (9) Reallocation of widow rockfish QS. (i) Additional definitions. 
The following definitions are applicable to paragraph (d)(9) of this 
section and apply to terms used for the purposes of reallocation of 
widow rockfish QS:
    (A) Nonwhiting trip means a fishing trip where less than 50 percent 
by weight of all fish reported on the state landing receipt is whiting.
    (B) PacFIN means the Pacific Fisheries Information Network of the 
Pacific States Marine Fisheries Commission.
    (C) Relative history means the landings history of a permit for a 
species, year, and area subdivision, divided by the total fleet history 
of the sector for that species, year, and area subdivision, as 
appropriate.
    (D) Whiting trip means a fishing trip where greater than or equal 
to 50 percent by weight of all fish reported on the state landing 
receipt is whiting.
    (ii) Eligibility criteria for receiving reallocated widow rockfish 
QS. Only the owner of an original QS permit (non-shoreside processor) 
to which QS was initially allocated in 2011 is eligible to receive 
reallocated widow rockfish QS based on the history of the limited entry 
trawl permit(s) that accrued to that QS permit, regardless of current 
limited entry permit ownership. For those new QS permits to which widow 
rockfish was administratively transferred by NMFS under U.S. court 
order, NMFS will reallocate widow rockfish QS directly to the new QS 
permit. Any limited entry trawl permit owners who did not submit an 
initial application for a QS permit will not be eligible to receive 
reallocated widow rockfish QS.
    (iii) Steps for widow rockfish QS reallocation formula. The widow 
rockfish QS reallocation formula is applied in the following steps:
    (A) First, for each limited entry trawl permit, NMFS will determine 
a preliminary QS allocation for non-whiting trips.
    (B) Second, for each limited entry trawl permit, NMFS will 
determine a preliminary QS allocation for whiting trips.
    (C) Third, for each limited entry trawl permit, NMFS will combine 
the amounts resulting from paragraphs (d)(9)(iii)(A) and (B) of this 
section.
    (D) Fourth, NMFS will reduce the total widow QS reallocated to QS 
permit owners by 10 percent as a set aside for AMP.
    (iv) Reallocation formula for specific widow rockfish QS amounts.
    (A) Reallocation formula rules. The following rules will be applied 
to data for the purpose of calculating the initial reallocation of 
widow rockfish QS:
    (1) Limited entry trawl permits will be assigned catch history or 
relative history based on the landing history of the vessel(s) 
associated with the permit at the time the landings were made.
    (2) The relevant PacFIN dataset includes species compositions based 
on port sampled data and applied to data at the vessel level.
    (3) Only landings of widow rockfish which were caught in the 
exclusive economic zone or adjacent state waters off Washington, Oregon 
and California will be used for calculating the reallocation of widow 
rockfish QS.
    (4) History from limited entry trawl permits that have been 
combined with a permit that qualified for a C/P endorsement and which 
has shorebased permit history will not be included in the preliminary 
QS and IBQ allocation formula, other than in the determination of fleet 
history used in the calculation of relative history for permits that do 
not have a C/P endorsement.
    (5) History of illegal landings and landings made under non-whiting 
EFPs that are in excess of the cumulative limits in place for the non-
EFP fishery will not count toward the allocation of QS.
    (6) The limited entry trawl permit's landings history includes the 
landings history of permits that have been previously combined with 
that permit.
    (7) If two or more limited entry trawl permits have been 
simultaneously registered to the same vessel, NMFS will split the 
landing history evenly between all such limited entry trawl permits 
during the time they were simultaneously registered to the vessel.
    (8) Unless otherwise noted, the calculation for the reallocation of 
widow rockfish QS under paragraph (d)(9) will be based on state landing 
receipts (fish tickets) as recorded in the relevant PacFIN dataset on 
July 27, 2016.
    (9) For limited entry trawl permits, landings under provisional 
``A'' permits that did not become ``A'' permits and ``B'' permits will 
not count toward the reallocation of widow QS, other than in the 
determination of fleet history used in the calculation of relative 
history for permits that do not have a C/P endorsement.
    (10) For limited entry trawl permits, NMFS will calculate the 
reallocation of widow rockfish QS separately based on

[[Page 42305]]

whiting trips and nonwhiting trips, and will weigh each calculation 
according to a split between whiting trips and nonwhiting trips of 
10.833 percent for whiting trips and 89.167 percent for nonwhiting 
trips, which is a one-time proportion necessary for the reallocation 
formula.
    (B) Preliminary widow rockfish QS reallocation for nonwhiting 
trips. The preliminary reallocation process in paragraph (d)(9)(iii)(A) 
of this section follows a two-step process, one to allocate a pool of 
QS equally among all eligible limited entry permits and the other to 
allocate the remainder of the preliminary QS based on permit history. 
Through these two processes, preliminary QS totaling 100 percent will 
be allocated. In later steps, this will be adjusted and reduced as 
indicated in paragraph (d)(9)(iii)(C) and (D) to determine the QS 
allocation.
    (1) QS to be allocated equally. The pool of QS for equal allocation 
will be determined using the nonwhiting trip landings history from 
Federal limited entry groundfish permits that were retired through the 
Federal buyback program (i.e., buyback program) (68 FR 42613, July 18, 
2003). The nonwhiting trip QS pool associated with the buyback permits 
will be the buyback permit history as a percent of the total fleet 
history for the 1994 to 2003 nonwhiting trip reallocation period. The 
calculation will be based on total absolute pounds with no dropped 
years and no other adjustments. The QS pool associated with the buyback 
permits will be divided equally among all qualifying limited entry 
permits.
    (2) QS to be allocated based on each permit's history. The pool of 
QS for allocation based on limited entry trawl permit nonwhiting trip 
history will be the QS remaining after subtracting out the QS allocated 
equally. This pool will be allocated to each qualifying limited entry 
trawl permit based on the permit's relative nonwhiting trip history 
from 1994 through 2002, dropping the three lowest years. For each 
limited entry trawl permit, NMFS will calculate relative history using 
the following methodology. First, NMFS will sum the permit's widow 
rockfish landings on nonwhiting trips for each year in the reallocation 
period. Second, NMFS will divide each permit's annual sum by the 
shoreside limited entry trawl fleet's annual sum. NMFS will then 
calculate a total relative history for each permit by adding all 
relative histories for the permit together and subtracting the three 
years with the lowest relative history for the permit. The result for 
each permit will be divided by the aggregate sum of all total relative 
histories of all qualifying limited entry trawl permits. NMFS will then 
multiply the result from this calculation by the amount of QS in the 
pool to be allocated based on each permit's history.
    (C) Preliminary widow rockfish QS reallocation for whiting trips. 
The preliminary reallocation process in paragraph (d)(9)(iii)(B) of 
this section follows a two-step process, one to allocate a pool of QS 
equally among all eligible limited entry permits and the other to 
allocate the remainder of the preliminary QS based on permit history. 
Through these two processes, preliminary QS totaling 100 percent will 
be allocated. In later steps, this will be adjusted and reduced as 
indicated in paragraph (d)(9)(iii)(C) and (D) to determine the QS 
allocation.
    (1) QS to be allocated equally. The pool of QS for equal allocation 
will be determined using whiting trip landings history from Federal 
limited entry groundfish permits that were retired through the Federal 
buyback program (i.e., buyback program) (68 FR 42613, July 18, 2003). 
The whiting trip QS pool associated with the buyback permits will be 
the buyback permit history as a percent of the total fleet history for 
the 1994 to 2003 whiting trip reallocation period. The calculation will 
be based on total absolute pounds with no dropped years and no other 
adjustments. The QS pool associated with the buyback permits will be 
divided equally among all qualifying limited entry permits.
    (2) QS to be allocated based on each permit's history. The pool of 
QS for allocation based on each limited entry trawl permit's whiting 
trip history will be the QS remaining after subtracting out the QS 
allocated equally. Widow rockfish QS for this pool will be allocated 
pro-rata based on each limited entry trawl permit's whiting QS from 
whiting trips that was established in 2010 and used to allocate the 
whiting trip portion of whiting QS at the time of initial 
implementation in 2011. Pro-rata means a percent that is equal to the 
percent of whiting QS from whiting trips.
    (D) QS from limited entry permits calculated separately for non-
whiting trips and whiting trips. NMFS will calculate the portion of 
widow QS a limited entry trawl permit receives based on non-whiting 
trips and whiting trips separately, and will weight each preliminary QS 
in proportion to the one-time reallocation percentage between whiting 
trips and non-whiting trips of 10.833 percent and 89.167 percent, 
respectively.
    (1) Nonwhiting trips. To determine the amount of widow QS for non-
whiting trips for each limited entry trawl permit, NMFS will multiply 
the preliminary QS for the permit from paragraph (d)(9)(iii)(A) of this 
section by the one-time reallocation percentage of 89.167 percent for 
non-whiting trips.
    (2) Whiting trips. To determine the amount of widow QS for whiting 
trips for each limited entry trawl permit, NMFS will multiply the 
preliminary QS for the permit from paragraph (d)(9)(iii)(B) of this 
section by the one-time reallocation percentage of 10.833 percent for 
whiting trips.
    (E) QS for each limited entry trawl permit. For each limited entry 
trawl permit, NMFS will add the results for the permit from paragraphs 
(d)(9)(iv)(D)(1) and (D)(2) of this section in order to determine the 
total QS widow for that permit.
    (F) Adjustment for AMP set-aside. NMFS will reduce the widow QS 
reallocated to each permit owner by a proportional amount that is 
equivalent to a reduction of 10 percent across all widow reallocation 
recipients' holdings as a set aside for AMP.
    (v) Widow rockfish QS reallocation application. Persons may apply 
for issuance of reallocated widow rockfish QS by completing and 
submitting a prequalified application. A ``prequalified application'' 
is a partially pre-filled application where NMFS has preliminarily 
determined the landings history for each limited entry trawl permit 
that qualifies the applicant for a reallocation of widow QS. The 
application package will include a prequalified application (with 
landings history). The completed application must be either postmarked 
or hand-delivered to NMFS within normal business hours no later than 
September 15, 2016. If an applicant fails to submit a completed 
application by the deadline date, they forgo the opportunity to receive 
reallocated widow rockfish QS and their percentage will be 
redistributed to other QS permit owners in proportion to their 
reallocated widow QS amount.
    (vi) Corrections to the application. If an applicant does not 
accept NMFS' calculation in the prequalified application either in part 
or whole, the applicant must identify in writing to NMFS which parts 
the applicant believes to be inaccurate, and must provide specific 
credible information to substantiate any requested corrections. The 
completed application and specific credible information must be 
provided to NMFS in writing by the application deadline. Written 
communication must either be post-marked or hand-delivered to NMFS 
within normal business hours no later than September 15, 2016.

[[Page 42306]]

Requests for corrections may only be granted for the following reasons:
    (A) Errors in NMFS' use or application of data, including:
    (1) Errors in NMFS' use or application of landings data from 
PacFIN;
    (2) Errors in NMFS' application of the reallocation formula;
    (3) Errors in identification of the QS permit owner, permit 
combinations, or vessel registration as listed in NMFS permit database;
    (vii) Submission of the application and application deadline.
    (A) Submission of the application. Submission of the complete, 
certified application includes, but is not limited to, the following:
    (1) The applicant is required to sign and date the application and 
declare that the contents are true, correct and complete.
    (2) The applicant must certify that they qualify to own reallocated 
widow rockfish QS.
    (3) The applicant must indicate they accept NMFS' calculation of 
reallocated widow rockfish QS provided in the prequalified application, 
or provide a written statement and credible information if they do not 
accept NMFS' calculation.
    (4) NMFS may request additional information of the applicant as 
necessary to make an IAD on reallocated widow rockfish QS.
    (B) Application deadline. A complete, certified application must be 
either postmarked or hand-delivered within normal business hours to 
NMFS, West Coast Region, Permits Office, Bldg. 1, 7600 Sand Point Way 
NE., Seattle, WA 98115, no later than September 15, 2016. NMFS will not 
accept or review any applications received or postmarked after the 
application deadline. There are no hardship exemptions for this 
deadline.
    (viii) Initial Administrative Determination (IAD). NMFS will issue 
an IAD for all complete, certified applications received by the 
application deadline date. If NMFS approves an application for 
reallocated widow rockfish QS, the IAD will say so, and the applicant 
will receive a 2017 QS permit specifying the reallocated amount of 
widow rockfish QS the applicant has qualified for in December 2016. If 
NMFS disapproves or partially disapproves an application, the IAD will 
provide the reasons. As part of the IAD, NMFS will indicate to the best 
of its knowledge whether the QS permit owner qualifies for QS or IBQ in 
amounts that exceed the accumulation limits and are subject to 
divestiture provisions given at paragraph (d)(4)(v) of this section. If 
the applicant does not appeal the IAD within 60 calendar days of the 
date on the IAD, the IAD becomes the final decision of the Regional 
Administrator acting on behalf of the Secretary of Commerce.
    (ix) Appeals. For reallocated widow rockfish QS issued under this 
section, the appeals process and timelines are specified at Sec.  
660.25(g), subpart C. For the reallocation of widow rockfish QS, the 
bases for appeal are described in paragraph (d)(9)(vi) of this section. 
Items not subject to appeal include, but are not limited to, the 
accuracy of permit landings data in the relevant PacFIN dataset on July 
27, 2016.
    (e) * * *
    (4) * * *
    (i) Vessel limits. For each IFQ species or species group specified 
in this paragraph, vessel accounts may not have QP or IBQ pounds in 
excess of the QP vessel limit (annual limit) in any year, and, for 
species covered by unused QP vessel limits (daily limit), may not have 
QP or IBQ pounds in excess of the unused QP vessel limit at any time. 
The QP vessel limit (annual limit) is calculated as all QPs transferred 
in minus all QPs transferred out of the vessel account. The unused QP 
vessel limits (daily limit) is calculated as unused available QPs plus 
any pending outgoing transfer of QPs.

------------------------------------------------------------------------
                                             QP Vessel       Unused QP
                                          limit  (annual   Vessel limit
            Species category                limit)  (in    (daily limit)
                                             percent)      (in percent)
------------------------------------------------------------------------
Arrowtooth flounder.....................              20  ..............
Bocaccio S. of 40[deg]10' N. lat........            15.4            13.2
Canary rockfish.........................              10             4.4
Chilipepper S. of 40[deg]10' N. lat.....              15  ..............
Cowcod S. of 40[deg]10' N. lat..........            17.7            17.7
Darkblotched rockfish...................             6.8             4.5
Dover sole..............................             3.9  ..............
English sole............................             7.5  ..............
Lingcod:
    N. of 40[deg]10' N. lat.............             5.3  ..............
    S. of 40[deg]10' N. lat.............            13.3  ..............
Longspine thornyhead:
    N. of 34[deg]27' N. lat.............               9  ..............
Minor rockfish complex N. of 40[deg]10'
 N. lat.:
    Shelf species.......................             7.5  ..............
    Slope species.......................             7.5  ..............
Minor rockfish complex S. of 40[deg]10'
 N. lat.:
    Shelf species.......................            13.5  ..............
    Slope species.......................               9  ..............
Other flatfish complex..................              15  ..............
Pacific cod.............................              20  ..............
Pacific halibut (IBQ) N. of 40[deg]10'              14.4             5.4
 N. lat.................................
Pacific ocean perch N. of 40[deg]10' N.                6               4
 lat....................................
Pacific whiting (shoreside).............              15  ..............
Petrale sole............................             4.5  ..............
Sablefish:
    N. of 36[deg] N. lat. (Monterey                  4.5  ..............
     north).............................
    S. of 36[deg] N. lat. (Conception                 15  ..............
     area)..............................
Shortspine thornyhead:
    N. of 34[deg]27' N. lat.............               9  ..............
    S. of 34[deg]27' N. lat.............               9  ..............
Splitnose rockfish S. of 40[deg]10' N.                15  ..............
 lat....................................

[[Page 42307]]

 
Starry flounder.........................              20  ..............
Widow rockfish..........................             8.5  ..............
Yelloweye rockfish......................            11.4             5.7
Yellowtail rockfish N. of 40[deg]10' N.              7.5  ..............
 lat....................................
Non-whiting groundfish species..........             3.2  ..............
------------------------------------------------------------------------

* * * * *
[FR Doc. 2016-15217 Filed 6-28-16; 8:45 am]
BILLING CODE 3510-22-P