[Federal Register Volume 83, Number 37 (Friday, February 23, 2018)]
[Proposed Rules]
[Pages 8028-8037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03548]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 300 and 679

[Docket No. 170626590-8143-01]
RIN 0648-BG94


Fisheries of the Exclusive Economic Zone Off Alaska; Pacific 
Halibut and Sablefish Individual Fishing Quota Program; Community 
Development Quota Program; Modifications to Recordkeeping and Reporting 
Requirements

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 issues a proposed rule that would modify regulations 
governing the Halibut and Sablefish Individual Fishing Quota (IFQ) 
Program. This proposed rule includes three actions. The first action 
would allow Western Alaska Community Development Quota (CDQ) groups to 
lease (to receive by transfer) halibut individual fishing quota (IFQ) 
in IFQ regulatory areas 4B, 4C, and 4D in years of extremely low 
halibut commercial catch limits. This proposed action is necessary to 
provide additional harvest opportunities to CDQ groups and community 
residents, and provide IFQ holders with the opportunity to receive 
value for their IFQ when the halibut commercial catch limits may not be 
large enough to provide for an economically viable fishery for IFQ 
holders. The second action would remove an obsolete reference in the 
IFQ Program regulations. The third action would clarify IFQ vessel use 
cap regulations. This proposed rule is intended to promote the goals 
and objectives of the Northern Pacific Halibut Act of 1982, the 
Magnuson-Stevens Fishery Conservation and Management Act, the Fishery 
Management Plan for Groundfish of the Bering Sea and Aleutian Islands 
Management Area, and other applicable laws.

DATES: Submit comments on or before March 26, 2018.

ADDRESSES: You may submit comments, identified by NOAA-NMFS-2017-0072, 
by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal eRulemaking Portal. Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2017-0072, click the ``Comment Now!'' icon, 
complete the required fields, and enter or attach your comments.
     Mail: Submit written comments to Glenn Merrill, Assistant 
Regional Administrator, Sustainable Fisheries Division, Alaska Region 
NMFS, Attn: Ellen Sebastian. Mail comments to P.O. Box 21668, Juneau, 
AK 99802-1668.
    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

[[Page 8029]]

information (e.g., name, address), 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).
    Electronic copies of the Regulatory Impact Review (referred to as 
the ``Analysis'') and the Categorical Exclusion prepared for this 
proposed rule may be obtained from http://www.regulations.gov or from 
the NMFS Alaska Region website at http://alaskafisheries.noaa.gov.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to NMFS at the above address; by email 
to [email protected]; or by fax to (202) 395-5806.

FOR FURTHER INFORMATION CONTACT: Stephanie Warpinski, 907-586-7228.

SUPPLEMENTARY INFORMATION: 

Authority for Action

    The International Pacific Halibut Commission (IPHC) and NMFS manage 
fishing for Pacific halibut through regulations established under the 
authority of the Northern Pacific Halibut Act of 1982 (Halibut Act). 
The IPHC promulgates regulations governing the halibut fishery under 
the Convention between the United States and Canada for the 
Preservation of the Halibut Fishery of the Northern Pacific Ocean and 
Bering Sea (Convention). The IPHC's regulations are subject to approval 
by the Secretary of State with the concurrence of the Secretary of 
Commerce (Secretary). NMFS publishes the IPHC's regulations as annual 
management measures pursuant to 50 CFR 300.62.
    The Halibut Act, at sections 773c(a) and (b), provides the 
Secretary with general responsibility to carry out the Convention and 
the Halibut Act. The Halibut Act, at section 773c(c), also provides the 
North Pacific Fishery Management Council (Council) with authority to 
develop regulations, including limited access regulations, that are in 
addition to, and not in conflict with, approved IPHC regulations. 
Regulations developed by the Council may be implemented by NMFS only 
after approval by the Secretary.
    The Council developed the Individual Fishing Quota Program (IFQ 
Program) for the commercial halibut and sablefish fisheries. The IFQ 
Program for the halibut fishery is implemented by Federal regulations 
at 50 CFR part 679 under the authority of the section 773 of the 
Halibut Act. The IFQ Program for the sablefish fishery is implemented 
by the Bering Sea and Aleutian Islands (BSAI) Fishery Management Plan 
(FMP) and Federal regulations at 50 CFR part 679 under the authority of 
section 303(b) of the Magnuson-Stevens Fishery Conservation and 
Management Act (Magnuson-Stevens Act).

Background

The IFQ Program

    The IFQ Program for the management of the fixed gear (hook-and-line 
and pot gear) halibut and sablefish fisheries off Alaska was 
implemented by NMFS in 1995 (58 FR 59375; November 9, 1993). The 
Council and NMFS designed the IFQ Program to allocate harvest 
privileges among participants in the commercial halibut and sablefish 
fisheries to reduce fishing capacity that had led to an unsafe ``race 
for fish'' as vessels raced to harvest their annual catch limits as 
quickly as possible before the annual limit was reached. A central 
objective of the IFQ Program is to support the social and economic 
character of the fisheries and the coastal fishing communities where 
many of these fisheries are based.
    Under the IFQ Program, access to the fixed gear sablefish and 
halibut fisheries is limited to those persons holding quota share (QS). 
NMFS issued separate QS for sablefish and halibut to qualified 
applicants based on their historical participation during a set of 
qualifying years in the sablefish and halibut fisheries. QS is an 
exclusive, revocable privilege that allows the holder to harvest a 
specific percentage of either the total allowable catch (TAC) in the 
sablefish fishery or the annual commercial catch limit in the halibut 
fishery. In addition to being specific to sablefish or halibut, QS is 
designated for specific geographic areas of harvest, a specific vessel 
operation type (catcher vessel or catcher/processor), and for a 
specific range of vessel sizes that may be used to harvest the 
sablefish or halibut (vessel category). There are four vessel 
categories of halibut QS: Category A shares are designated for catcher/
processors, vessels that process their catch at sea (i.e., freezer 
longline vessels), and do not have a vessel length restriction; 
Category B shares are designated to be fished on catcher vessels 
greater than 60 feet length overall (LOA); Category C shares are 
designated to be fished on catcher vessels greater than 35 feet but 
less than or equal to 60 feet LOA; and Category D shares are designated 
to be fished on catcher vessels less than or equal to 35 feet LOA.
    NMFS annually issues IFQ permits to each QS holder. An annual IFQ 
permit authorizes the permit holder to harvest a specified amount of 
the IFQ species in a regulatory area from a specific operation type and 
vessel category. IFQ is expressed in pounds and is based on the amount 
of QS held in relation to the total QS pool for each regulatory area 
with an assigned catch limit.
    In addition to ending the race for fish, other goals of the IFQ 
Program are to prevent absentee ownership of QS and promote an owner-
operator fleet. To meet these goals, the IFQ Program includes 
restrictions on the ability of QS holders to transfer their annual IFQ. 
The Council and NMFS recognized that at the time the IFQ Program was 
implemented, some QS holders had long-standing business arrangements 
with hired masters who harvested IFQ on behalf of the QS holder. 
Therefore, the IFQ Program authorizes the use of hired masters in 
certain instances. Since the implementation of the IFQ Program, the 
Council has recommended and NMFS has approved further regulatory 
amendments to limit the ability of QS holders to designate a hired 
master to discourage absentee ownership and move towards an owner-
operated program (see Section 3.8.3.1 of the Analysis).
    The IFQ Program allows limited transfers of IFQ under specific 
conditions, including temporary medical transfers, survivorship 
transfer privileges, temporary military transfers, transfers through 
the Community Quota Entity Program, and transfers to the guided angler 
fish program. When these specific conditions are met, regulations allow 
a QS holder to designate a hired master to land the resulting IFQ 
derived from that holder's QS (see 50 CFR 679.41).
    The Council and the public frequently use the terms ``IFQ lease'' 
or ``lease'' to refer to the transfer of IFQ without a transfer of the 
underlying QS. However, NMFS does not generally use the term ``lease'' 
in its IFQ Program regulations governing the transfer of IFQ. For 
consistency with the terminology used in the existing regulations and 
for clarity, this proposed rule uses the term ``transfer of IFQ''.
    As described above, the halibut fishery is managed in separate 
geographic areas of harvest, as determined by the IPHC. Accordingly, 
NMFS issues halibut IFQ consistent with the IPHC's regulatory areas. 
NMFS's IFQ regulatory areas are described in Figure 15 to part 679. 
This proposed rule uses the term ``Area'' to

[[Page 8030]]

refer to a specific IFQ regulatory area (e.g., Area 4B). The first 
action in this proposed rule only pertains to Areas 4B, 4C, 4D, and 4E. 
Area 4B includes waters in the Central and Western Aleutian Islands. 
Areas 4C, 4D, and 4E include waters north of the Aleutian Islands, in 
the Bering Sea, and around the Pribilof Islands (see Section 1.3 of the 
Analysis). The IPHC considers the halibut in Areas 4C, 4D, and 4E to be 
a single stock unit for stock assessment and management purposes, and 
often refers to them combined as Areas 4CDE.
    The commercial catch limits for Areas 4B, 4C, and 4D are allocated 
between two distinct management programs, the CDQ Program and the IFQ 
Program. Throughout the duration of the IFQ Program, the Area 4E 
commercial catch limit has been exclusively allocated to the CDQ 
Program; therefore, no Area 4E QS or IFQ is allocated.
    Overall, the halibut IFQ commercial catch limits in Areas 4B and 
4CDE have trended downward over the past 15 years (see Section 3.6.1 of 
the Analysis). The Area 4B commercial catch limit has dropped 
substantially from 2001 to 2007 (about 3.9 million pounds in 2001 to 
about 1.1 million pounds in 2007). Although there was a slight 
increasing trend between 2008 and 2011, the commercial catch limit for 
IFQ trended downward again from 2012 to 2015. In 2015, the Area 4B 
commercial catch limit for IFQ (about 0.9 million pounds) was less than 
a quarter of what it was in 2001. The combined commercial catch limit 
for IFQ in Areas 4C and 4D has seen more fluctuation during this 
period, but has still experienced an overall downward trend since 2007. 
In 2007, the combined commercial catch limit for IFQ in Areas 4C and 4D 
was about 2.2 million pounds; in 2015, it was about 0.7 million pounds.

The CDQ Program

    The CDQ Program was implemented in 1992, and in 1996, the Magnuson-
Stevens Act was amended to include provisions specific to the CDQ 
Program. The purpose of the CDQ Program is: (1) To provide eligible 
western Alaska villages with the opportunity to participate and invest 
in fisheries in the Bering Sea and Aleutian Islands management area 
(BSAI); (2) to support economic development in western Alaska; (3) to 
alleviate poverty and provide economic and social benefits for 
residents of western Alaska; and (4) to achieve sustainable and 
diversified local economies in western Alaska (16 U.S.C. 
1855(i)(1)(A)).
    The CDQ Program consists of six different non-profit managing 
organizations (CDQ groups) representing different geographical regions 
in Alaska: Aleutian Pribilof Island Community Development Association 
(APICDA), Bristol Bay Economic Development Corporation (BBEDC), Central 
Bering Sea Fishermen's Association (CBSFA), Coastal Villages Region 
Fund (CVRF), Norton Sound Economic Development Corporation (NSEDC), and 
Yukon Delta Fisheries Development Association (YDFDA). The CDQ Program 
receives annual allocations of TAC for a variety of commercially 
valuable species in the BSAI groundfish, crab, and halibut fisheries, 
which are in turn allocated among the CDQ groups. CDQ groups use their 
allocations of halibut to provide opportunities for small vessel 
fishing by residents of their member communities.
    Among the species CDQ groups are allocated for commercial fishing, 
Pacific halibut is an important species for community resident 
employment and income. NMFS allocates halibut to CDQ groups for 
commercial fisheries in four Areas: 4B, 4C, 4D, and 4E (see Section 
3.5.1 of the Analysis). Allocations of halibut CDQ are correlated with 
the geographic area in which a CDQ group's member communities are 
located. For example, 30 percent of the halibut commercial catch limit 
in Area 4B is allocated to the CDQ Program. The entire allocation to 
the CDQ Program in Area 4B is provided to APICDA, which represents all 
of the CDQ communities located within the geographic range of Area 4B. 
Area 4C surrounds the Pribilof Islands, and the portion of the halibut 
commercial catch limit allocated to the CDQ program is split between 
CBSFA (which represents the CDQ community of St. Paul) and APICDA 
(which represents the CDQ community of St. George). The CDQ allocation 
in Area 4D is split among BBEDC, NSEDC, and YDFDA. The CDQ allocation 
in Area 4E is split between BBEDC and CVRF. A CDQ group may transfer 
its halibut CDQ to another CDQ group that has halibut CDQ allocation in 
the same regulatory area (50 CFR 679.31(c)).
    The Council recommended and NMFS approved amendments to the IFQ 
Program to allow CDQ Program participants to harvest allocations of 
Area 4D halibut CDQ in Area 4E. This provision allows residents in CDQ 
communities along the Western Alaska coast to have more near-shore 
opportunities to harvest their group's halibut CDQ (68 FR 9902, March 
3, 2003). Additionally, the Council recommended and NMFS approved 
amendments to the IFQ Program to allow for the harvest of Area 4C 
halibut IFQ and CDQ in Area 4D in response to reports of localized 
depletion, decreasing catch per unit effort, and resultant limitations 
on the optimal utilization of Area 4C halibut IFQ and CDQ (70 FR 43328, 
July 27, 2005). See Section 3.5.2 of the Analysis for additional detail 
on the history of the halibut CDQ fishery.
    The resident halibut CDQ fleets and criteria for participation in 
CDQ fisheries vary among the CDQ groups. Resource use is impacted by 
factors such as the number of interested and qualified residents, the 
location of the halibut resource relative to nearshore fishing grounds, 
other fishing opportunities (such as salmon and crab), other employment 
opportunities, and the availability of processing operations. Also, the 
resident halibut CDQ fleet is impacted by internal economic decisions 
made by the CDQ groups and in the ways the CDQ groups choose to promote 
economic development in their communities. In general, many of the 
small boat fishermen in CDQ communities are dependent on the halibut 
fishery (Section 3.5.3 of the Analysis).

Need for Action

    The downward trend of halibut commercial catch limits in Areas 4B 
and 4CDE over the past 15 years has been dramatic, with current limits 
significantly lower than in the recent past years. The recent years of 
low halibut abundance and the resulting low commercial catch limits in 
Areas 4B and 4CDE have made it increasingly difficult for most CDQ 
groups to create a viable commercial halibut fishing opportunity for 
their community residents. The halibut resource is economically 
significant for small vessel fishing operations as well as culturally 
and socially important for residents of Western Alaska CDQ communities. 
Correspondingly, low halibut abundance and the resulting low commercial 
catch limits in Areas 4B, 4C, and 4D have made it increasingly 
difficult for IFQ holders to have an economically viable fishery.
    Under current regulations, CDQ groups cannot receive by transfer 
any IFQ derived from catcher vessel QS. Current regulations also 
prohibit halibut QS holders from transferring their IFQ separate from 
the underlying QS except in very narrow, specific situations, such as 
temporary military transfers (see Section 3.7 of the Analysis for more 
information). These restrictions limit the options for CDQ groups to 
temporarily expand opportunities for halibut fishing by community 
residents in times of low halibut abundance (see Section 3.7 of the 
Analysis).
    To address these problems, this proposed rule would create a 
voluntary

[[Page 8031]]

option for an IFQ holder in Areas 4B, 4C and 4D to temporarily transfer 
his or her halibut IFQ to a CDQ group in years of extremely low halibut 
abundance. This proposed flexibility would allow CDQ groups to expand 
the fishing opportunities for the small boat fleets operating out of 
the CDQ group's communities and provide IFQ holders with the 
opportunity to receive value for their IFQ when extremely low halibut 
commercial catch limits may not be large enough to provide for an 
economically viable fishery for IFQ holders.

This Proposed Rule and the Anticipated Effects

    This proposed rule includes three actions. The primary action, 
Action 1, would create a voluntary option for an IFQ holder to 
temporarily transfer his or her halibut IFQ to a CDQ group in years of 
extremely low halibut abundance. Actions 2 and 3 would make minor 
regulatory adjustments to remove an obsolete reference in the IFQ 
Program regulations and to clarify IFQ vessel use cap regulations, 
respectively. The following paragraphs provide additional detail on the 
proposed actions.

Action 1

    This proposed rule would: (1) Define the halibut commercial catch 
limits under which CDQ groups could receive IFQ by transfer; (2) 
establish limits on the types and amounts of IFQ that can be 
transferred; and (3) establish reporting requirements for CDQ groups 
receiving IFQ by transfer. This proposed rule would not convert 
transferred IFQ to CDQ. Allocations of halibut CDQ would not change 
under this proposed rule.
    Under this proposed rule, CDQ groups would be able to receive 
transfers of halibut catcher vessel IFQ (Categories B, C, and D IFQ) in 
Areas 4C and 4D when the IPHC approves a halibut commercial catch limit 
that is less than 1.5 million pounds in Areas 4CDE. CDQ groups would be 
able to receive transfers of halibut catcher vessel IFQ (Categories B, 
C, and D IFQ) in Area 4B when the IPHC approves a halibut commercial 
catch limit that is less than 1 million pounds in Area 4B. IFQ holders 
would be able to transfer both blocked and unblocked IFQ to CDQ groups. 
This proposed rule would not revise current regulations that authorize 
an IFQ holder in Areas 4B, 4C and 4D to transfer his or her Category A 
halibut IFQ to any qualified person, including a CDQ group. This 
proposed rule would provide additional harvesting flexibility for 
Category A halibut IFQ transferred to a CDQ group in years of extremely 
low halibut abundance, as described in more detail below.
    The Council recommended these thresholds based on an analysis of 
commercial catch limits between 2008 and 2017, a period of time 
representing a range of different halibut commercial catch limits and 
decreasing opportunities for CDQ community fishermen. The Council 
considered a range of different commercial catch limit thresholds for 
both Area 4B and Areas 4CDE, before selecting these thresholds. Section 
3.8.5 of the Analysis shows that from 2008 to 2016, the halibut 
commercial catch limit in Area 4B was never below the proposed 
threshold of 1 million pounds. However, in Areas 4CDE, the halibut 
commercial catch limit was below the proposed threshold of 1.5 million 
pounds in 2 years, 2014 and 2015. Therefore, under halibut abundance 
conditions over the last 8 years, had this proposed rule been in effect 
it would have allowed IFQ transfers to CDQ groups to occur in only 2 
years, and only in Areas 4CDE.
    In selecting these thresholds, the Council sought to balance the 
goal of providing additional halibut fishing opportunities for CDQ 
residents when the halibut CDQ allocation alone may not be large enough 
to sustain small vessel resident fisheries, with the need to avoid 
potential adverse distributional impacts on other halibut IFQ users 
that could result if IFQ transfers were permitted. The Council also 
indicated that the flexibility to transfer halibut IFQ in Areas 4B, 4C, 
and 4D was to be available only during worst case scenarios for halibut 
commercial catch limits in these Areas (Section 2.3 of the Analysis). 
For Areas 4CDE, the Council determined and NMFS agrees that a halibut 
commercial catch limit below 1.5 million pounds, as was experienced in 
2014 and 2015, reflects a worst case scenario for Areas 4CDE as it 
represents an extremely low commercial catch limit for these Areas. For 
Area 4B, the Council determined and NMFS agrees that a halibut 
commercial catch limit below 1 million pounds, which has not been 
experienced during the last 10 years, reflects a worst case scenario 
for Area 4B as it represents an extremely low commercial catch limit 
for this Area. The Council selected a lower threshold for Area 4B due 
to concerns expressed by the public about potentially adverse 
distributional impacts on the community of Adak with a threshold that 
was higher than 1 million pounds.
    This proposed rule would establish several limits on the catcher 
vessel IFQ that can be transferred as well as some flexibility with 
transferred catcher vessel and catcher/processor IFQ. This proposed 
rule includes five limits: (1) A CDQ group would only be able to 
receive catcher vessel IFQ by transfer for an Area in which it also 
holds halibut CDQ; (2) no vessel greater than 51 feet in length overall 
(LOA) could be used to harvest catcher vessel IFQ transferred to a CDQ 
group; (3) catcher vessel IFQ resulting from QS acquired after December 
14, 2015 could not be transferred to a CDQ group until 3 years after 
the QS was acquired (i.e., a cooling off period); (4) an IFQ holder 
would not be allowed to transfer catcher vessel halibut IFQ to a CDQ 
group for more than 2 consecutive years; and (5) in Area 4B, only those 
QS holders who hold less than 76,355 QS units specified for Area 4B 
would be allowed to transfer their catcher vessel IFQ to CDQ groups.
    The first limit would prevent a CDQ group from receiving catcher 
vessel halibut IFQ by transfer for an Area in which that CDQ group does 
not hold halibut CDQ. The Council recommended this provision so that 
any catcher vessel IFQ transferred to a CDQ group would be available 
for use in conjunction with halibut CDQ that is issued to a CDQ group. 
The Council determined, and NMFS agrees, that coupling catcher vessel 
IFQ received by transfer to areas in which a CDQ group hold halibut CDQ 
would ensure that the benefits of the IFQ transfer manifest with the 
intended recipients--the resident halibut fleet in the CDQ group's 
communities adjacent to the Area. For example, if a CDQ group is issued 
halibut CDQ in Areas 4B and 4C, that CDQ group could only receive 
catcher vessel Area 4B and Area 4C IFQ by transfer. Additionally, under 
this proposed rule at Sec.  679.42(a)(iii) and (iv), CDQ groups that 
are eligible to receive a transfer of Area 4D catcher vessel IFQ would 
be able to harvest that IFQ, and any Category A IFQ it holds, in Area 
4E (Section 3.5.2 of the Analysis). The Council determined, and NMFS 
agrees, that this additional flexibility would improve the 
effectiveness of the proposed action by enabling transferred IFQ to be 
fished closer to shore so that smaller vessels typically used by 
residents in CDQ communities can more easily participate in halibut 
fisheries. This proposed flexibility also would be consistent with 
section 11(8) of the IPHC annual management measures, which allows Area 
4D halibut CDQ to be harvested in Area 4E. However, the IPHC would need 
to revise its annual management measures to extend this harvesting 
flexibility to catcher vessel and catcher/processor IFQ held by a

[[Page 8032]]

CDQ group before NMFS can approve it (see section 3.8.6 of the 
Analysis). The IPHC is scheduled to consider this revision to the 
annual management measures at its January 2018 annual meeting. NMFS 
will take into account the IPHC's decision when developing the final 
rule for this action.
    The second limit would prohibit the use of vessels greater than 51 
feet LOA to harvest catcher vessel IFQ that is transferred to a CDQ 
group. The Council recommended this vessel size limit because this is 
the largest size vessel owned by CDQ community residents that has 
landed halibut CDQ during the past 10 years, 2008 through 2017 (Section 
3.5.3 of the Analysis). Because this proposed rule is intended to 
provide additional harvest opportunities to CDQ community residents, 
the Council determined and NMFS agrees that allowing larger than 51 
feel LOA to harvest transferred catcher vessel IFQ would be 
inconsistent with this objective. Current regulations provide 
sufficient flexibility to allow IFQ that could be transferred to a CDQ 
group under this proposed rule to be fished on a vessel of any length 
up to 51 feet LOA (see Section 2.4 of the Analysis).
    This proposed rule would also clarify that any Area 4D Category A 
IFQ that is held by a CDQ group or transferred to a CDQ group may be 
fished in Area 4E by vessels less than or equal to 51 feet LOA when the 
commercial catch limit threshold in Area 4CDE is triggered. The Council 
determined and NMFS agrees that this provision would provide additional 
harvest opportunities for CDQ residents. The 51-foot LOA restriction 
would help ensure additional harvest opportunities would be provided on 
the size class of vessels used by CDQ community residents (see Section 
3.8.6 in the Analysis for additional detail). This proposed rule would 
not revise current regulations that authorize Category A IFQ for Areas 
4B, 4C, or 4D to be fished in the corresponding Area on a vessel of any 
length.
    Under the third limit, IFQ resulting from QS acquired after 
December 14, 2015 could not be transferred to a CDQ group until 3 years 
after the QS was acquired. This provision would effectively create a 
``cooling off'' period. For example, if a person acquired Area 4C 
halibut QS on March 15, 2016, that holder would not be eligible to 
transfer the IFQ from that QS to a CDQ group until March 14, 2019. The 
Council determined and NMFS agrees that the proposed cooling off period 
is necessary to reduce the incentive to QS holders to acquire QS with 
the intention of transferring the resulting IFQ to CDQ groups rather 
than fishing the IFQ. Section 3.8.7 of the Analysis notes that the 
Council considered a range of cooling off periods from 3 to 5 years. In 
selecting the proposed cooling off period, the Council determined and 
NMFS agrees that a 3-year period would balance the objectives of 
reducing the incentives for QS holders to acquire QS with the intention 
of transferring it to CDQ groups with the need to provide an adequate 
market for CDQ groups to receive IFQ by transfer. The Council also 
recommended that QS acquired after December 14, 2015, be subject to the 
cooling off period. The Council selected the December 14, 2015, date 
because that is the date when the Council first added the option of a 
cooling off period to the suite of alternatives and options under 
consideration for the proposed action. NMFS agrees that this proposed 
date is reasonable as it would deter speculative investment in 
anticipation of this proposed rule, and selection of this proposed 
date, versus the effective date of this action if approved, accelerates 
the time when QS acquired after December 14, 2015, would be eligible 
for transfer.
    The fourth limit would prohibit an IFQ holder from transferring 
catcher vessel halibut IFQ for a specific IFQ regulatory area to a CDQ 
group for more than 2 consecutive years. This 2-year limit would apply 
to calendar years and would not apply only to years in which the 
commercial catch limit is below the threshold. Additionally, this limit 
would apply to the transfer of any halibut IFQ for a specific Area. If 
an IFQ holder chooses to transfer some but not all of his or her IFQ 
for a particular Area during a year when the annual commercial catch 
limit for that Area set below the proposed threshold that transfer 
would count towards the 2-year limit. Transfers of IFQ for one Area 
would not affect the ability to transfer IFQ for another Area. The 
Council determined and NMFS agrees that limitations on how many 
consecutive years an IFQ holder could transfer IFQ to a CDQ group would 
limit the potential for a specific IFQ holder to continuously transfer 
IFQ to CDQ groups rather than fishing that IFQ or transferring the 
underlying QS to other new entrants in the fishery. Section 3.8.8 of 
the Analysis explains that the Council considered a range of 
limitations on the number of years that IFQ could be transferred (i.e., 
from 2 to 4 years), and that a less restrictive limitation of 2 years 
may be appropriate given the relatively low likelihood that the 
thresholds to allow leasing in Area 4B or Areas 4C and 4D will be met.
    Under the fifth limit, only catcher vessel QS holders that hold 
less than 76,355 QS units specified for Area 4B would be allowed to 
transfer their catcher vessel IFQ to CDQ groups. NMFS would consider 
all categories of Area 4B QS holdings regardless of blocked or 
unblocked status. This amount of QS units yielded approximately 7,500 
pounds of halibut IFQ in 2016. The Council recommended and NMFS 
proposes this limitation to ensure that persons holding larger amounts 
of QS units continue to be active fishermen in the Area 4B halibut 
fishery while providing an opportunity for persons holding smaller 
amounts of QS units to transfer catcher vessel IFQ to CDQ groups if the 
1 million pound commercial catch limit threshold to allow IFQ transfers 
is met. The Council recommended and NMFS is proposing this limitation 
only for Area 4B to accommodate the specific nature of IFQ operations 
in the remote Aleutian Island communities in Area 4B, and after 
considering a range of different limits (from 2,000 to 7,500 pounds of 
halibut IFQ, with the preferred option to convert 7,500 pounds to 2016 
QS units) that are described in Section 3.8.9 of the Analysis.
    The Council received public testimony indicating that Aleutian 
Islands communities in Area 4B receive substantial benefits from 
fishery participation by persons holding relatively large amounts of 
halibut QS and IFQ in that area. The testifiers expressed concern that 
allowing these QS holders to transfer IFQ to a CDQ group could 
substantially reduce these benefits to the communities in years of 
extremely low commercial catch limits. In addition, persons holding 
less than 76,355 QS units would be allocated relatively small amounts 
of IFQ that may not be economically feasible to harvest in years of 
extremely low commercial halibut catch limits. The Council determined 
and NMFS agrees that limiting eligibility to transfer IFQ to holders of 
less than 76,355 QS units in Area 4B would allow the holders of these 
relatively small amounts of QS to lease the resulting IFQ in years of 
extremely low commercial halibut catch limits while maintaining the 
benefits of the fishery to the Aleutian Island communities from 
harvests of the larger holdings of IFQ.
    This proposed rule also establishes a reporting requirement for CDQ 
groups that receive IFQ by transfer. The proposed report would be 
required only for those years in which CDQ groups received IFQ by 
transfer. CDQ groups

[[Page 8033]]

that receive IFQ by transfer would be required to report the annual 
amount and vessel category of Area 4 halibut IFQ transferred to the CDQ 
group, the criteria used to select IFQ holders to transfer Area 4 
halibut IFQ to the CDQ group, and the criteria used to determine the 
person(s) eligible to fish Area 4 halibut IFQ received by transfer.
    In recommending this proposed rule, the Council stated its intent 
for catcher vessel IFQ transferred to a CDQ group to be fished by 
residents of that CDQ community but did not recommend that NMFS 
establish this requirement in regulation. Section 2.3 of the Analysis 
describes that CDQ groups have different methods of defining residents 
in their communities and different techniques for determining who will 
harvest their halibut CDQ. After considering this information, the 
Council specified that it did not intend for NMFS to establish a 
regulatory definition for CDQ community resident, nor did it intend for 
NMFS to verify that CDQ community residents were receiving the benefits 
of transferred IFQ under this proposed rule. The Council recommended 
that NMFS implement the requirement for CDQ groups to report the 
persons who harvest the IFQ received by transfer. This would allow the 
Council and the public to monitor the use of IFQ transferred to CDQ 
groups and provide the Council with information to determine whether 
the use of transferred IFQ is consistent with its intent for the 
action.
    The Council recommended and NMFS proposes a reporting requirement 
to understand the criteria that a CDQ group uses to receive transfers 
of IFQ and provide harvest opportunities. This information could be 
used to evaluate the effectiveness of this proposed rule to provide 
benefits to members of CDQ communities. This proposed rule would 
require the report to be submitted to NMFS no later than January 31 of 
the year after the IFQ was transferred to the CDQ group. NMFS proposes 
this deadline to be consistent with other reports required under the 
IFQ Program, and to ensure that NMFS has received the report prior to 
the issuance of IFQ that typically occurs in mid-February. If a CDQ 
group is required to submit a report and does not do so by the 
deadline, the CDQ group would be ineligible to receive transfers of 
catcher vessel IFQ until the report is submitted.
    Under this proposed rule, a CDQ group that wished to receive 
halibut IFQ by transfer would make an arrangement with an IFQ holder to 
transfer his or her IFQ. The CDQ group would need to complete an 
Application for Temporary Transfer of Halibut and Sablefish IFQ and 
submit the application to NMFS for approval. Once approved, NMFS would 
issue the CDQ group an IFQ permit with the pounds of halibut IFQ that 
would be available to be fished. After determining who would fish the 
halibut IFQ, the CDQ group with the IFQ permit would then need to apply 
for a hired master permit for the vessel operator designated to fish 
the halibut IFQ. Current regulations authorize a vessel operator to 
harvest halibut IFQ and CDQ on the same fishing trip and a vessel 
operator harvesting both halibut CDQ and IFQ transferred to a CDQ group 
would need to carry (1) a halibut CDQ permit, (2) a CDQ hired master 
permit, (3) a copy of the IFQ permit of the CDQ group, and (4) an IFQ 
hired master permit. Additionally, any vessels fishing halibut IFQ 
transferred to a CDQ group would be subject to the current IFQ vessel 
use caps under Sec.  679.42(h)(1). If a vessel harvested both halibut 
IFQ and CDQ, only the halibut IFQ would accrue towards and be subject 
to the vessel use cap.
    Halibut that is landed by a vessel operator harvesting CDQ and IFQ 
would be debited off two separate catch limits. Therefore, for purposes 
of catch accounting, participants would need to track what amount of 
halibut harvest is associated with the group's CDQ and what amount is 
associated with the IFQ permit held by the CDQ group. This distinction 
would be recorded on the fish ticket (Section 3.8.11.3 of the 
Analysis). If this proposed rule is approved, NMFS would need to make 
changes to the database that monitors transfers of IFQ between permit 
holders and that is used to issue hired master permits to allow for 
this new type of transfer (see Section 3.8.11.4 of the Analysis).
    Under this proposed rule, CDQ groups would be responsible for cost 
recovery fees based on the IFQ pounds held on the IFQ permit. Section 
304(d)(2)(A) of the Magnuson-Stevens Act obligates NMFS to recover the 
actual costs of management, data collection, and enforcement (direct 
program cost) of the IFQ fisheries. Therefore, NMFS implemented a cost 
recovery fee program for the IFQ fisheries in 2000 (65 FR 14919, March 
20, 2000). While costs specific to the CDQ Program for halibut are 
recoverable through a separate cost recovery program (81 FR 150, 
January 5, 2016), this proposed rule would require regulatory changes 
to the IFQ transfer and hired master use provisions and therefore 
constitute changes in management of the IFQ Program. CDQ group 
participants receiving IFQ transfers would be required to pay an IFQ 
cost recovery fee as a portion of the ex-vessel value of their landed 
halibut.
    Section 7(2) of the IPHC annual management measures (82 FR 12730, 
March 7, 2017) authorizes a vessel operator harvesting halibut CDQ in 
Areas 4D or 4E to retain halibut that are smaller than the size limit 
established by the IPHC for personal use. Under the status quo, a 
vessel operator harvesting halibut IFQ held by a CDQ group along with 
halibut CDQ may retain halibut less than legal size for personal use. 
Therefore, if this proposed action is approved, vessel operators 
harvesting both halibut CDQ and halibut IFQ transferred to a CDQ group 
in Areas 4D or 4E would be authorized to retain halibut smaller than 
the size limit established by the IPHC in length for personal use as 
specified in section 7 of the IPHC annual management measures. The 
personal use allotment would apply to all halibut IFQ transferred to a 
CDQ group under this exemption. Section 7(3) of the IPHC annual 
management measures requires a CDQ group to report on all retained 
halibut for personal use that are less than legal size and harvested on 
behalf of a CDQ group.

Proposed Regulations to Implement Action 1

    This proposed rule would modify the definition of ``annual 
commercial catch limit'' at 50 CFR 300.61 to include definitions for 
Areas 3B and 4A, and for Areas 4B, 4C, 4D, and 4E.
    This proposed rule would modify Sec.  679.41 to allow transfer of 
halibut IFQ in Areas 4B, 4C, and 4D in years of low halibut catch 
limits in Areas 4B and 4CDE to CDQ groups along with the specific 
conditions under which this transfer activity could occur.
    Additionally, a reporting requirement would be added at Sec.  
679.5(l)(10) to require a CDQ group to submit a report on the criteria 
it used to select IFQ holders from whom IFQ transfers would be 
received, the criteria it used to determine the persons who can harvest 
transferred IFQ, and the amount and type of IFQ transferred.
    This proposed rule also includes a provision which would be added 
under Sec.  679.42 to allow Area 4D IFQ that is transferred to a CDQ 
group to be harvested in Area 4E.
    Finally, NMFS is proposing to add and reserve several paragraphs in 
this proposed rule to account for another rulemaking that proposes to 
modify the same sections of Part 679 that would be modified by this 
proposed rule.

Anticipated Effects of Action 1

    The effects of Action 1 would depend on first the halibut resource 
falling

[[Page 8034]]

below the threshold of 1 million pounds in Area 4B and 1.5 million 
pounds in Area 4CDE and then IFQ holders choosing to transfer their 
halibut IFQ to a CDQ group. If, in the future these conditions are met, 
then this proposed rule would be expected to provide benefits most 
directly to CDQ community residents who have traditionally been 
involved in the halibut CDQ fishery by allowing for continued 
employment and income in years where commercial halibut catch limits 
are at extremely low levels. This opportunity may have a particularly 
meaningful impact on these residents, as there tends to be limited 
regional economic diversity in these communities, resulting in few 
substitute employment options for residents (Section 3.8.1 of the 
Analysis). This proposed rule would provide IFQ holders and CDQ groups 
with an opportunity to alleviate the adverse economic, social, and 
cultural impacts of extremely low levels of commercial halibut catch 
limits on Western Alaskan communities.
    The benefits that could be derived from this proposed rule are 
different among CDQ groups and would likely even be distributional 
within a group. Overall, this action would not necessarily be expected 
to result in a financial gain for a CDQ group that chooses to receive 
halibut IFQ by transfer. It is likely that some, or all, of the fee an 
IFQ holder would incur to transfer his or her IFQ would be paid by the 
CDQ group. This proposed rule could also provide distributional 
benefits to some processing plants, secondary service providers, and 
communities as a whole (see Section 3.8 of the Analysis).
    Allowing CDQ groups the flexibility to harvest any IFQ received by 
transfer for Area 4D in Area 4E would add to the existing flexibility 
CDQ groups have to move their halibut CDQ between IFQ regulatory areas. 
The Council determined and NMFS agrees that this potential for change 
in locational fishing intensity from this proposed action would not be 
a threat to overall stock conservation as long as the Area 4CDE total 
catch limit is not exceeded, while noting that there is a possibility 
of localized impacts on fishing opportunities if fishing effort 
patterns were to change substantially.
    Halibut QS holders in Areas 4B, 4C, and 4D may also benefit from 
this proposed rule. These QS holders may feel constrained as their QS 
is associated with diminishing pounds of IFQ under the relatively low 
commercial halibut catch limits in recent years. In years of extremely 
low halibut abundance, it may not be economically viable for some QS 
holders to harvest their small amounts of IFQ, particularly in remote 
areas covered by this proposed rule where operating costs are higher 
relative to other IFQ regulatory areas. Depending on operating costs 
and catch limits, QS holders that transfer their IFQ to CDQ groups may 
be able to earn more revenue from transferring their IFQ than from 
harvesting it themselves or hiring a master to harvest the IFQ (if the 
QS holder is eligible). As the IFQ Program strictly limits leasing 
(transfers), this proposed rule would be the only opportunity for many 
QS holders to transfer their Area 4B, 4C, and 4D halibut IFQ (see 
Section 3.8.1) in years of extremely low commercial catch limits.
    This proposed rule may have adverse indirect effects on some 
stakeholders of the halibut IFQ fishery (see Section 3.8.2 of the 
Analysis). This action could prompt some amount of temporary IFQ 
consolidation, impacting the number of trips taken or resulting in some 
vessels not being used in the halibut fishery at all in a season. This 
reduction in participation could result in reduced fishery revenues for 
affected participants. Consolidation could also result in a 
displacement of some captain and crew jobs for the duration of time 
that the halibut catch limits are low enough to allow IFQ transfers. To 
the extent that they are not the QS holder making the decision to 
transfer their IFQ to CDQ groups, this proposed rule may also 
disadvantage vessel owners that use their vessel to harvest halibut IFQ 
if QS holders who historically fished their IFQ on that vessel choose 
to lease the IFQ and the vessel owner has reduced revenues from the 
fishery. Section 3.8.2 of the Analysis notes that it is uncertain how 
much IFQ may be transferred, from whom, and how this would impact 
current operations.
    As discussed in Section 3.8.1 of the Analysis, transferred IFQ 
received by a CDQ group and harvested by its community resident fleets 
would be expected to follow landing patterns similar to the current 
halibut CDQ operations. However, if the locations of port of origin and 
landings changes with IFQ received by this transfer provision, there is 
a potential some communities may not receive revenues from raw fish 
tax, business landing tax, and other economic activity associated with 
fishing, such as purchase of food and fuel. These are distributional 
impacts; therefore, they could represent losses to some communities, 
while communities with traditional halibut CDQ participation may 
benefit due to the increased activity from halibut IFQ.
    Additionally, this proposed rule may motivate some QS holders who 
may otherwise consider selling, to hold onto their Areas 4B, 4C, or 4D 
halibut QS. For those individuals seeking entry into the halibut QS 
market, the lack of QS movement may not be a positive result. However, 
to prevent speculative purchases of QS with the intent of using the 
transfer provision allowed under this proposed rule, this proposed rule 
includes a cooling off period that limits the transfer of IFQ until 3 
years after the QS is acquired. Areas 4B, 4C, and 4D already tend to 
have the lowest level of QS transactions of any regulatory area 
(although, this may also be because a portion of the catch limit is 
designated as CDQ, thus the QS pool is much smaller) and the QS prices, 
similar to other regulatory areas, appear to be increasing (Section 
3.8.4 of the Analysis).
    Additionally, this proposed rule would support one of the other 
goals of the IFQ Program, which is to increase the ability of the rural 
coastal communities adjacent to the BSAI to share in the wealth 
generated by the IFQ Program by providing community residents with the 
opportunity to benefit from fishing for additional halibut IFQ in years 
of extremely low commercial catch limits (see Section 3.8.3.1 of the 
Analysis).

Action 2

    This proposed rule would remove an obsolete reference in the 
regulations at Sec.  679.42(a)(2)(i). Currently, this regulation 
provides an exception in the wording. However, the paragraph (k) 
referred to in Sec.  679.42(a)(2)(i) was modified by the final rule to 
revise regulations governing the use of commercial halibut QS and the 
processing of non-IFQ species when processed halibut is onboard a 
vessel (73 FR 8822; February 15, 2008). That final rule removed 
paragraph (k) and re-designated paragraph (l) as paragraph (k). NMFS 
inadvertently neglected to remove the cross-reference to paragraph (k) 
in Sec.  679.42(a)(2)(i). Therefore, with this proposed rule, NMFS 
proposes removing the cross-reference to paragraph (k) to clarify that 
persons possessing unused Category B, C, or D halibut QS may be on 
board a catcher/processor vessel when that vessel is harvesting and 
processing Category A halibut or sablefish IFQ or is harvesting and 
processing non-IFQ species. The effects of this action are expected to 
be minor and beneficial by improving the clarity of the regulations.

[[Page 8035]]

Action 3

    This proposed rule would clarify existing regulations pertaining to 
the IFQ vessel limitations, also referred to as the vessel use caps. 
NMFS proposes to add language to Sec.   679.42(h)(1) and (h)(2) to 
clarify that the vessel use caps only apply to halibut and sablefish 
IFQ and not to halibut and sablefish CDQ. This action would improve the 
clarity of the regulations and help IFQ and CDQ participants understand 
what regulations to which they are subject. The effects of this action 
are expected to be minor and beneficial by improving the clarity of the 
regulations.

Classification

    Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the 
NMFS Assistant Administrator has determined that this proposed rule is 
consistent with the BSAI FMP, other provisions of the Magnuson-Stevens 
Act, and other applicable law, subject to further consideration after 
public comment.
    Regulations governing the U.S. fisheries for Pacific halibut are 
developed by the International Pacific Halibut Commission (IPHC), the 
Pacific Fishery Management Council, the North Pacific Fishery 
Management Council (Council), and the Secretary of Commerce. Section 5 
of the Northern Pacific Halibut Act of 1982 (Halibut Act, 16 U.S.C. 
773c) allows the Regional Council having authority for a particular 
geographical area to develop regulations governing the allocation and 
catch of halibut in U.S. Convention waters which are in addition to, 
and not in conflict with, IPHC regulations. This proposed rule is 
consistent with the Council's authority to allocate halibut catches 
among fishery participants in the waters in and off Alaska. The Halibut 
Act, at sections 773c(a) and (b), provides the Secretary of Commerce 
with the general responsibility to carry out the Convention with the 
authority to, in consultation with the Secretary of the department in 
which the U.S. Coast Guard is operating, adopt such regulations as may 
be necessary to carry out the purposes and objectives of the Convention 
and the Halibut Act. This proposed rule is consistent with the Halibut 
Act and other applicable laws.
    This proposed rule has been determined to be not significant for 
the purposes of Executive Order 12866.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that this proposed rule, if adopted, would not have a 
significant economic impact on a substantial number of small entities.
    This proposed rule would revise IFQ Program regulations to 
authorize CDQ groups to receive halibut IFQ transfers in certain areas 
when catch limits are below the established thresholds, subject to 
specific limitations. The directly regulated entities (118 small 
entities in 2015) are persons that hold Areas 4B, 4C, or 4D halibut QS, 
CDQ groups, and harvesters, including CDQ community residents, who have 
traditionally harvested halibut CDQ and may have an opportunity to 
harvest halibut IFQ received by transfer. Almost all of the directly 
regulated entities are considered small entities. As described in the 
Analysis, the 118 directly regulated entities would only be impacted to 
the extent that they choose to (and are able to) participate in 
receiving halibut IFQ transfers as a result of the proposed regulatory 
changes.
    Direct impacts would be expected to be positive for both CDQ 
community resident halibut fishery participants and QS holders that 
choose to utilize the IFQ transfer provision because the opportunity 
for this additional flexibility in years of low halibut abundance would 
be voluntary for both user groups and would only be undertaken if it 
would benefit the parties to the transfer. Direct impacts would be 
expected to be positive for CDQ community resident harvesters who have 
traditionally harvested halibut CDQ and may have an opportunity to 
harvest additional transfers of halibut IFQ under this proposed rule 
because it would provide an opportunity to continue to receive economic 
benefits from fishery participation in times of low abundance. This 
proposed rule therefore is not expected to have a significant economic 
impact on a substantial number of small entities regulated by this 
proposed rule.
    As a result, an initial regulatory flexibility analysis is not 
required and none has been prepared.

Collection-of-Information Requirements

    This proposed rule contains collection-of-information requirements 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). NMFS has submitted these 
requirements to OMB for approval under Control Number 0648-0272 and 
Control Number 0648-0711. Public reporting burden is estimated to 
average per response: 2 hours for Application for Temporary Transfer of 
Halibut and Sablefish IFQ, 40 hours for the report, and 1 minute for 
electronic submission of cost recovery fees or 30 minutes for non-
electronic fee submission. These estimates include the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection information.
    Public comment is sought regarding whether these proposed 
collections of information are necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collections of 
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments on 
these or any other aspects of the collections of information to NMFS 
(see ADDRESSES), and by email to [email protected] or fax to 
202-395-5806.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to penalty for 
failure to comply with, a collection of information subject to the 
requirement of the PRA, unless that collection of information displays 
a currently valid OMB control number. All currently approved NOAA 
collections of information may be viewed at: http://www.cio.noaa.gov/services_programs/prasubs.html.

List of Subjects

50 CFR Part 300

    Administrative practice and procedure, Fisheries, Fishing, 
Reporting and recordkeeping requirements.

50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: February 15, 2018.
Samuel D. Rauch, III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, NMFS proposes to amend 50 
CFR parts 300 and 679 as follows:

PART 300--INTERNATIONAL FISHERIES REGULATIONS

Subpart E--Pacific Halibut Fisheries

0
1. The authority for 50 CFR part 300, subpart E, continues to read as 
follows:

    Authority:  16 U.S.C. 773-773k.

0
2. In Sec.  300.61, revise the definition of ``Annual commercial catch 
limit'' to read as follows:

[[Page 8036]]

Sec.  300.61   Definitions.

* * * * *
    Annual commercial catch limit, for purposes of commercial fishing 
in:
    (1) Commission regulatory areas 2C and 3A, means the annual 
commercial allocation minus an area-specific estimate of commercial 
halibut wastage.
    (2) Commission regulatory areas 3B and 4A, means the annual total 
allowable halibut removals by persons fishing IFQ.
    (3) Commission regulatory areas 4B, 4C, 4D, and 4E, means the 
annual total allowable halibut removals by persons fishing IFQ and CDQ.
* * * * *

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

0
3. The authority citation for 50 CFR part 679 continues to read as 
follows:

    Authority:  16 U.S.C. 773 et seq.; 1801 et seq.; 3631 et seq.; 
Pub. L. 108-447; Pub. L. 111-281.

0
4. In Sec.  679.5:
0
a. Add and reserve paragraph (l)(9);
0
b. Add paragraph (l)(10);
0
c. Add and reserve paragraph (v); and
0
d. Add paragraph (w) to read as follows:


Sec.  679.5   Recordkeeping and reporting.

* * * * *
    (l) * * *
    (9) [Reserved]
    (10) A report on annual IFQ regulatory areas 4B, 4C, and 4D Halibut 
IFQ transfer activities must be submitted to NMFS by a CDQ group as 
required at Sec.  679.5(w).
* * * * *
    (v) [Reserved]
    (w) Report on Area 4 halibut IFQ transfers to CDQ groups--(1) 
Applicability. A CDQ group that receives IFQ regulatory area 4 halibut 
IFQ by transfer must submit a timely and complete report on the CDQ 
group's annual halibut IFQ transfer activities for each calendar year 
that it receives IFQ regulatory area 4 halibut IFQ by transfer. A CDQ 
group is not required to submit a report for any calendar year in which 
it did not receive any IFQ regulatory area 4 halibut IFQ by transfer.
    (2) Time limits and submittal. A CDQ group must submit a complete 
report by January 31 of the year following a fishing year during which 
the CDQ group receives IFQ regulatory area 4B, 4C, or 4D halibut IFQ by 
transfer. The complete report must be submitted to the North Pacific 
Fishery Management Council, 605 West 4th Ave., Suite 306, Anchorage, AK 
99501-2252, and to NMFS-Alaska Regional Administrator, P.O. Box 21668, 
Juneau, AK, 99802-1668.
    (3) Complete report. A complete report contains all report 
requirements described in paragraphs (w)(4)(i) through (w)(4)(iii) of 
this section.
    (4) Report requirements. A CDQ group must report the following 
information:
    (i) The annual amount, IFQ regulatory area and vessel category of 
IFQ regulatory area 4B, 4C, and 4D halibut IFQ transferred to the CDQ 
group;
    (ii) The criteria used to select IFQ holders to transfer IFQ 
regulatory area 4B, 4C, and 4D halibut IFQ to the CDQ group; and
    (iii) The criteria used to determine the person(s) eligible to 
harvest IFQ regulatory area 4B, 4C, and 4D halibut IFQ received by 
transfer.
0
5. In Sec.  679.41:
0
a. Add and reserve paragraph (c)(12);
0
b. Add paragraph (c)(13);
0
c. Revise paragraphs (d)(1), (g)(1), and (h)(2);
0
d. Add and reserve paragraph (n); and
0
e. Add paragraph (o) to read as follows:


Sec.  679.41   Transfer of quota shares and IFQ.

* * * * *
    (c) * * *
    (12) [Reserved]
    (13) If the person applying to receive halibut IFQ assigned to 
vessel categories B, C, or D in IFQ regulatory areas 4B, 4C, or 4D is a 
CDQ group, the following determinations are required:
    (i) The CDQ group applying to receive halibut IFQ for an IFQ 
regulatory area receives an annual allocation of halibut CDQ for that 
IFQ regulatory area pursuant to Sec.  679.31(b)(1);
    (ii) The QS holder applying to transfer halibut IFQ to a CDQ group 
has not transferred any halibut IFQ assigned to vessel categories B, C, 
or D for that IFQ regulatory area to a CDQ group during the last two 
consecutive fishing years;
    (iii) If the IFQ to be transferred to a CDQ group results from QS 
that was transferred to the QS holder after December 14, 2015, the QS 
holder applying to transfer halibut IFQ to a CDQ group has held the 
underlying QS for that IFQ for a minimum of 3 years from the date NMFS 
approved the transfer;
    (iv) If the IFQ to be transferred to a CDQ group is assigned to 
vessel categories B, C, or D in IFQ regulatory area 4B, the QS holder 
applying to transfer that halibut IFQ to a CDQ group holds fewer than 
76,355 halibut QS units in IFQ regulatory area 4B; and
    (v) The CDQ group applying to receive halibut IFQ has submitted a 
complete report if required to do so by Sec.  679.5(w).
    (d) * * *
    (1) Application for Eligibility. All persons, except as provided in 
paragraphs (d)(1)(i) and (d)(1)(ii) of this section, applying to 
receive QS or IFQ must submit an Application for Eligibility to Receive 
QS/IFQ (Application for Eligibility) containing accurate information to 
the Regional Administrator. The Regional Administrator will not approve 
a transfer of IFQ or QS to a person until the Application for 
Eligibility for that person is approved by the Regional Administrator. 
The Regional Administrator shall provide an Application for Eligibility 
form to any person on request.
    (i) An Application for Eligibility is not required for a CQE if a 
complete application to become a CQE, as described in paragraph (l)(3) 
of this section, has been approved by the Regional Administrator on 
behalf of an eligible community.
    (ii) An Application for Eligibility is not required for a CDQ 
group.
* * * * *
    (g) * * *
    (1) Except as provided in paragraph (f), paragraph (g)(2), 
paragraph (l), paragraph (n) or paragraph (o) of this section, only 
persons who are IFQ crew members, or who were initially issued QS 
assigned to vessel categories B, C, or D, and meet the eligibility 
requirements in this section, may receive by transfer QS assigned to 
vessel categories B, C, or D, or the IFQ resulting from it.
* * * * *
    (h) * * *
    (2) IFQ resulting from categories B, C, or D QS may not be 
transferred separately from its originating QS, except as provided in 
paragraph (d), paragraph (f), paragraph (k), paragraph (l), paragraph 
(m), or paragraph (o) of this section.
* * * * *
    (n) [Reserved]
    (o) Transfer of IFQ to CDQ groups. (1) A QS holder who holds fewer 
than 76,355 units of halibut QS in IFQ regulatory area 4B may transfer 
halibut IFQ assigned to vessel categories B, C, or D in IFQ regulatory 
area 4B to a CDQ group that receives an allocation of IFQ regulatory 
area 4B halibut CDQ if the annual commercial halibut catch limit, as 
defined in Sec.  300.61 of this title, for Area 4B is less than 1 
million pounds in that calendar year.
    (2) A QS holder in IFQ regulatory areas 4C or 4D may transfer 
halibut IFQ assigned to vessel categories B, C, or D in IFQ regulatory 
areas 4C or 4D to a CDQ group that receives an allocation of halibut 
CDQ in that IFQ regulatory area

[[Page 8037]]

if the annual commercial halibut catch limit, as defined in Sec.  
300.61 of this title, for Area 4CDE is less than 1.5 million pounds in 
that calendar year.
    (3) A QS holder must meet the requirements in paragraph (c)(13) of 
this section to transfer halibut IFQ assigned to vessel categories B, 
C, or D in IFQ regulatory areas 4B, 4C, or 4D to a CDQ group.
    (4) A CDQ group that receives halibut IFQ by transfer may not 
transfer that halibut IFQ to any other person.
0
6. In Sec.  679.42:
0
a. Revise paragraph (a)(1);
0
b. Remove paragraph (a)(2)(i);
0
c. Redesignate paragraphs (a)(2)(ii) through (iv) as paragraphs 
(a)(2)(i) through (iii);
0
d. Add paragraph (a)(2)(iv); and
0
e. Revise paragraphs (h)(1) introductory text and (h)(2) introductory 
text to read as follows:


Sec.  679.42   Limitations on use of QS and IFQ.

    (a) * * *
    (1) The QS or IFQ specified for one IFQ regulatory area must not be 
used in a different IFQ regulatory area, except for the following:
    (i) All or part of the QS and IFQ specified for regulatory area 4C 
may be harvested in either Area 4C or Area 4D.
    (ii) All or part of the halibut CDQ specified for regulatory area 
4D may be harvested in either Area 4D or Area 4E.
    (iii) If a CDQ group is authorized to receive a transfer of halibut 
IFQ assigned to vessel categories B, C, or D in IFQ regulatory area 4D 
as specified in Sec.  679.41(o) of this part, all or part of the 
halibut IFQ specified for regulatory area 4D that is held by or 
transferred to a CDQ group may be harvested in either Area 4D or Area 
4E.
    (2) * * *
* * * * *
    (iv) Halibut IFQ assigned to vessel category B, C, or D held by a 
CDQ group may not be used on a vessel over 51 feet LOA, irrespective of 
the vessel category assigned to the IFQ.
* * * * *
    (h) * * *
    (1) Halibut. No vessel may be used, during any fishing year, to 
harvest more halibut IFQ than one-half percent of the combined total 
catch limits of halibut for IFQ regulatory areas 2C, 3A, 3B, 4A, 4B, 
4C, 4D, and 4E, except that:
* * * * *
    (2) Sablefish. No vessel may be used, during any fishing year, to 
harvest more sablefish IFQ than one percent of the combined fixed gear 
TAC of sablefish for the GOA and BSAI IFQ regulatory areas, except 
that:
* * * * *
[FR Doc. 2018-03548 Filed 2-22-18; 8:45 am]
 BILLING CODE 3510-22-P