[Federal Register Volume 87, Number 12 (Wednesday, January 19, 2022)]
[Proposed Rules]
[Pages 2737-2742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00646]



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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 220110-0008]
RIN 0648-BK77


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Reef Fish Fishery of the Gulf of Mexico; Amendment 53

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes to implement management measures described in 
Amendment 53 to the Fishery Management Plan for the Reef Fish Resources 
of the Gulf of Mexico (Gulf)(FMP), as prepared by the Gulf of Mexico 
Fishery Management Council (Council)(Amendment 53). This proposed rule 
and Amendment 53 would modify the allocation of Gulf red grouper catch 
between the commercial and recreational sectors as well as revise 
sector annual catch limits (ACLs) and annual catch targets (ACTs). The 
purposes of this proposed rule and Amendment 53 are to revise the red 
grouper sector allocations using the best scientific information 
available and to modify the allowable harvest of red grouper based on 
results of the recent stock assessment.

DATES: Written comments must be received by February 18, 2022.

ADDRESSES: You may submit comments on the proposed rule identified by 
``NOAA-NMFS-2021-0098'' by either of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov 
and enter ``NOAA-NMFS-2021-0098'' in the Search box. Click the 
``Comment'' icon, complete the required fields, and enter or attach 
your comments.
     Mail: Submit all written comments to Peter Hood, NMFS 
Southeast Regional Office, 263 13th Avenue South, St. Petersburg, FL 
33701.
    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), 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 Amendment 53, which includes an environmental 
assessment, a fishery impact statement, a Regulatory Flexibility Act 
(RFA) analysis, and a regulatory impact review, and electronic copies 
of a minority report submitted by four Council members, may be obtained 
from the Southeast Regional Office website at https://www.fisheries.noaa.gov/action/amendment-53-red-grouper-allocations-and-catch-levels.

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

SUPPLEMENTARY INFORMATION: NMFS and the Council manage the Gulf reef 
fish fishery, which includes red grouper, under the FMP. The Council 
prepared the FMP and NMFS implements the FMP through regulations at 50 
CFR part 622 under the authority of the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act).

Background

    The Magnuson-Stevens Act requires NMFS and regional fishery 
management councils to prevent overfishing and achieve, on a continuing 
basis, the optimum yield from federally managed fish stocks. These 
mandates are intended to ensure fishery resources are managed for the 
greatest overall benefit to the nation, particularly with respect to 
providing food production and recreational opportunities, and 
protecting marine ecosystems.
    Unless otherwise noted, all weights in this proposed rule are in 
gutted weight.
    Red grouper in the Gulf exclusive economic zone (EEZ) are found 
primarily in the eastern Gulf on offshore hard bottom areas and are 
managed as a single stock with commercial and recreational ACLs and 
ACTs. The allocation of the ACL between the commercial and recreational 
sectors is currently 76 percent commercial and 24 percent recreational 
and was set through Amendment 30B to the FMP in 2009 (74 FR 17603; 
April 16, 2009).
    Commercial red grouper fishing is managed under the Grouper-
Tilefish Individual Fishing Quota (IFQ) program, which began January 1, 
2010 through Amendment 29 to the FMP (74 FR 44732; August 31, 2009, and 
75 FR 9116; March 1, 2010). Under the IFQ program, the commercial red 
grouper quota is based on the commercial sector's red grouper ACT 
(commercial quota), and red grouper allocation is distributed on 
January 1 of each year to those who hold red grouper shares. Both red 
grouper and gag, another grouper species managed under the IFQ program, 
have a multi-use provision that allows a portion of the red grouper 
quota to be harvested under the gag allocation, and vice versa. The 
multi-use provision is based on the difference between the respective 
ACLs and ACTs.
    The recreational red grouper harvest is managed with catch limits, 
in-season and post-season accountability measures (AMs), season and 
area closures, a minimum size limit, and a recreational bag limit. The 
in-season AM for red grouper requires NMFS to close the recreational 
sector for the remainder of the fishing year when red grouper landings 
reach or are projected to reach the recreational ACL. If recreational 
landings exceed the red grouper recreational ACL in a fishing year, the 
post-season AM requires NMFS to shorten the length of the following 
recreational fishing season by the amount necessary to ensure landings 
do not exceed the recreational ACT. If the red grouper stock is 
overfished, NMFS must also reduce the ACL and ACT by the amount of the 
recreational ACL overage in the prior year. The recreational red 
grouper AMs were implemented in 2012 (77 FR 6988; February 10, 2012) 
and were modified in 2013 (78 FR 6218; January 30, 2013).
    In 2018, the Council received a recommendation from its Scientific 
and Statistical Committee (SSC) to reduce the red grouper commercial 
and recreational ACLs and ACTs, effective for the 2019 fishing year. 
This recommendation was based on an interim analysis conducted by the 
Southeast Fisheries Science Center (SEFSC). The Council also heard 
concerns from fishermen about the condition of the red grouper stock 
because commercial and recreational harvests were well below the 
respective quota and ACL. The SSC did not feel comfortable recommending 
a new acceptable biological catch based on the analysis but determined 
that the analysis did support recommending that the Council reduce the 
2019 total ACL from 10.70 million lb (4.85 million kg) to 4.60 million 
lb (2.09 million kg). The Council noted the severe red tide conditions 
that occurred in the summer and fall of 2018 off the Florida west coast 
and decided to further reduce the total ACL to an amount equivalent to

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the 2017 harvest of 4.16 million lb (1.89 million kg). The Council took 
action by initially requesting an emergency rule to reduce red grouper 
ACLs and ACTs (84 FR 22389, May 17, 2019), and then making the harvest 
reductions permanent in a subsequent framework action (84 FR 52036; 
October 1, 2019).
    The Southeast Data, Assessment, and Review (SEDAR) 61 assessment 
was completed in September 2019, and used updated recreational catch 
and effort data from the Marine Recreational Information Program (MRIP) 
Access Point Angler Intercept Survey (APAIS) and Fishing Effort Survey 
(FES). MRIP began incorporating a new survey design for APAIS in 2013 
and replaced the Coastal Household Telephone Survey (CHTS) with FES in 
2018. Prior to the implementation of MRIP in 2008, recreational 
landings estimates were generated using the Marine Recreational 
Fisheries Statistics Survey (MRFSS). As explained in Amendment 53, 
total recreational fishing effort estimates generated from MRIP-FES are 
generally higher than both the MRFSS and MRIP CHTS estimates. For 
example, the current red grouper total ACL and recreational ACL in MRIP 
CHTS units are 4.16 million lb (1.89 million kg) and 1.00 million lb 
(0.45 million kg), respectively. In MRIP-FES units, that red grouper 
total ACL and recreational ACL would be an estimated 5.26 million lb 
(2.39 million kg) and 2.10 million lb (0.95 million kg), respectively. 
This difference is because MRIP-FES is designed to more accurately 
measure fishing activity, not because there was a sudden rise in 
fishing effort.
    NMFS developed calibrations models to adjust historic effort 
estimates so that they can be compared to new estimates from MRIP-FES. 
The calibration methodologies are discussed in Section 1.1 of Amendment 
53 as well as in the SEDAR 61 final report. In response to comments on 
the integrated draft environmental impact statement, NMFS added 
information to Section 1.1 and included links to the calibration peer 
reviews. However, this peer review information has been publicly 
available since the reviews were completed in 2017 and 2018. In 
addition, a publication titled ``Survey Design and Statistical Methods 
for Estimation of Recreational Fisheries Catch and Effort'' has been 
available since 2018, and can be found at https://media.fisheries.noaa.gov/2021-09/MRIP-Survey-Design-and-Statistical-Methods-2021-09-15.pdf. This publication explains the different 
recreational fishing surveys and the time-series calibration methods.
    The SEDAR 61 assessment concluded that the Gulf red grouper stock 
is not overfished and overfishing is not occurring, but that as of 
2017, the stock remained below the spawning stock biomass (SSB) at 30 
percent of the spawning potential ratio (SPR), where SPR is the ratio 
of SSB to its unfished state. Based on the results of SEDAR 61, the 
Council's SSC recommended an overfishing limit (OFL) of 5.35 million lb 
(2.43 million kg) and an acceptable biological catch (ABC) of 4.90 
million lb (2.22 million kg). Because these catch levels are in MRIP-
FES units, the recommended ABC appears to be larger than the current 
total ACL of 4.16 million lb (1.89 million kg), but would actually 
result in a decrease in allowable harvest when compared to the 5.26 
million lb (2.39 million kg) MRIP-FES equivalent. In addition, these 
catch level recommendations assumed status quo sector allocations for 
red grouper, which were based in part on 1986-2005 landings estimates 
generated by MRFSS. As explained in Amendment 53, retaining the current 
allocation would increase the commercial ACL but substantially decrease 
the recreational ACL when comparing like units. Therefore, the Council 
requested that the SSC review alternative catch level projections based 
on sector allocation alternatives that used MRIP-FES data and several 
time series (1986-2005, 1986-2009, and 1986-2018). The SSC reviewed 
these alternative sector allocation scenarios, affirmed that the SEDAR 
61 (2019) assessment, which included MRIP-FES recreational landings, 
represented the best scientific information available, and provided 
alternative catch level recommendations based on the allocation 
alternatives.
    The commercial-recreational allocation impacts the catch level 
projections produced by the assessment. As more of the total ACL is 
allocated to the recreational sector, the proportion of recreational 
discards increases. Recreational discard mortality rates are assumed to 
be less than commercial discard mortality rates but the magnitude of 
recreational discards is considerably greater than commercial discards. 
Generally, a fish caught and released by a recreational fishermen has a 
greater likelihood of survival than by a commercial fishermen because 
of how and where they fish. However, because of the much higher numbers 
of red grouper that are released by the recreational sector vs the 
commercial sector, the total number of discards that die from the 
recreational fishing exceeds those from the commercial fishing. This 
results in additional mortality for the stock and a lower projected 
annual yield, which means a lower OFL, ABC, and total ACL. However, 
this is not due to any change in how the recreational sector prosecutes 
the fishery but occurs because MRIP-FES estimates higher levels of 
fishing effort, and consequently a greater number of fish being caught, 
which includes discards and the associated mortality of discarding 
fish.
    In Amendment 53, the Council considered several allocation 
alternatives: Maintaining the current allocation, maintaining the 
current commercial ACL and allocating the remaining pounds to the 
recreational sector, and using the various time series reviewed by the 
SSC to adjust the allocation to reflect the most recent understanding 
of historical landings. The Council decided to adjust the allocation 
using the same years used to set the current allocation in Amendment 
30B to the FMP (1986-2005). The Council determined that this would best 
represent the historic landings for the years used in Amendment 30B 
while accounting for the change from MRFSS data to MRIP-FES data. 
Because the MRIP-FES landings estimates are greater than the previous 
estimates of recreational landings estimates, the commercial-
recreational allocation would shift from 76 percent and 24 percent, 
respectively, to 59.3 percent and 40.7 percent, respectively. Based on 
the results of SEDAR 61 and using the proposed allocation of 59.3 
percent commercial and 40.7 percent recreational, the Council's SSC 
recommended an OFL of 4.66 million lb (2.11 million kg) and an ABC of 
4.26 million lb (1.93 million kg). The total ACL is equal to the ABC.

Management Measures Contained in This Proposed Rule

    If implemented, this proposed rule would revise the sector ACLs and 
ACTs for the Gulf red grouper stock.

Annual Catch Limits and Annual Catch Targets

    The current commercial ACL and ACT are 3.16 million lb (1.43 
million kg) and 3.00 million lb (1.36 million kg), respectively. The 
current recreational ACL and ACT are 1.00 million lb (0.45 million kg) 
and 0.92 million lb (0.42 million kg) in MRIP CHTS units, respectively. 
In MRIP FES units, the current recreational ACL and ACT are estimated 
to be 2.10 million lb (0.95 million kg) and 1.93 million lb (0.88 
million kg), respectively.
    As explained previously, the ABC associated with the preferred 
allocation is 4.26 million lb (1.93 million kg) and the total ACL is 
equal to the ABC.

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Applying the allocation selected by the Council in Amendment 53 to the 
total ACL results in a 2.53 million lb (1.15 million kg) commercial ACL 
and a 1.73 million lb (0.78 million kg) recreational ACL in MRIP FES 
units.
    The Council did not apply the ACL/ACT Control Rule to set the 
commercial buffer between the ACL and ACT. Normally, a sector managed 
using an IFQ program without a commercial quota overage during its 
reference period (as was the case for the reference period 2016-2019) 
would yield a 0 percent buffer from the control rule. Instead, in 
Amendment 53, the Council decided to continue using a buffer of 5 
percent between the commercial ACL and ACT to allow red grouper and gag 
share categories in the IFQ program to have a multi-use provision that 
allows a portion of the red grouper quota to be harvested under the gag 
multi-use allocation, and vice versa. Applying the 5 percent buffer to 
the proposed commercial ACL of 2.53 million lb (1.15 million kg) yields 
a commercial ACT of 2.40 million lb (1.09 million kg).
    The Council did apply the ACL/ACT Control Rule to set the 
recreational sector buffer between the ACL and ACT. Using 2016-2019 
MRIP FES landings data in the control rule produced a buffer of 9 
percent, one percentage point greater than the current buffer. Applying 
this 9 percent buffer to the proposed recreational ACL of 1.73 million 
lb (0.78 million kg) generated a recreational ACT of 1.57 million lb 
(0.71 million kg) in MRIP FES units.

Minority Report

    A minority report signed by four Council members raises several 
objections to the preferred allocation in Amendment 53, including 
allegations that the preferred allocation violates several provisions 
of the Magnuson-Stevens Act. These issues were also raised in public 
comments on the draft environmental impact statement, which is 
integrated into Amendment 53. Responses to those comments are included 
in Appendix J of Amendment 53. Consistent with those responses, NMFS 
has determined that the proposed rule is consistent with the relevant 
provisions of the Magnuson-Stevens Act. Any final rule will respond to 
comments on the proposed rule received by NMFS during the comment 
period, as well as the issues raised in the Council's minority report.

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 Amendment 53, the Reef Fish FMP, other provisions of 
the Magnuson-Stevens Act, and other applicable law, subject to further 
consideration after public comment.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866. The Magnuson-Stevens Act provides 
the legal basis for this proposed rule. No duplicative, overlapping, or 
conflicting Federal rules have been identified. In addition, no new 
reporting and record-keeping requirements are introduced by this 
proposed rule. This proposed rule contains no information collection 
requirements under the Paperwork Reduction Act of 1995.
    NMFS prepared an initial regulatory flexibility analysis (IRFA) for 
this proposed rule, as required by section 603 of the Regulatory 
Flexibility Act, 5 U.S.C. 603. The IRFA describes the economic impact 
this proposed rule, if adopted, would have on small entities. A 
description of this proposed rule, why it is being considered, and the 
purposes of this proposed rule are contained in the preamble and in the 
SUMMARY section of the preamble. A copy of the full analysis is 
available from NMFS (see ADDRESSES). A summary of the IRFA follows.
    The objective of this proposed rule is to use the best scientific 
information available to establish Gulf red grouper sector allocations, 
ACLs, and ACTs, thereby ensuring that the sector ACLs accurately 
reflect the commercial and recreational sectors' historical 
participation and the recreational ACL is consistent with data used to 
monitor recreational landings and trigger AMs. All monetary estimates 
in the following analysis are in 2019 dollars.
    Amendment 53 would revise the sector allocations of the total ACL 
for Gulf red grouper from 76 percent for the commercial sector and 24 
percent for the recreational sector to 59.3 percent for the commercial 
sector and 40.7 percent for the recreational sector. The current OFL, 
ABC, and total ACL are 14.16 million lb (6.42 million kg), 13.92 
million lb (6.31 million kg), and 4.16 million lb (1.89 million kg), 
respectively. The recreational portion of these values are based on 
MRIP-CHTS data. Amendment 53 would change the OFL and ABC to 4.66 
million lb (2.11 million kg) and 4.26 million lb (1.93 million kg), 
consistent with the results of the most recent stock assessment and the 
recommendations of the Council's SSC, and would set the total ACL equal 
to the ABC of 4.26 million lb (1.93 million kg). The recreational 
portion of these values are based on MRIP-FES data. Applying the new 
sector allocations would reduce the commercial ACL from 3.16 million lb 
(1.43 million kg) to 2.53 million lb (1.15 million kg) and the 
recreational ACL from 2.10 million lb (0.95 million kg) in MRIP-FES 
units, or 1.00 million lb (0.45 million kg) in MRIP-CHTS units, to 1.73 
million lb (0.78 million kg) in MRIP-FES units. This proposed rule and 
Amendment 53 would retain the current 5 percent buffer between the 
commercial ACL and ACT (quota), resulting in a reduction of the 
commercial ACT (quota) from 3.00 million lb (1.36 million kg) to 2.40 
million lb (1.09 million kg). However, it would increase the buffer 
between the recreational ACL and ACT from 8 percent to 9 percent, and 
thereby reduce the recreational ACT from 1.59 million lb (0.72 million 
kg) to 1.57 million lb (0.71 million kg) given the proposed reduction 
in the recreational ACL. As a result, this proposed rule is expected to 
directly regulate commercial fishing businesses that possess Gulf red 
grouper shares in the grouper-tilefish IFQ program and for-hire fishing 
businesses that target red grouper.
    The commercial red grouper quota is allocated annually based on the 
percentage of red grouper shares in each IFQ account (e.g., if an 
account possesses 1 percent of the red grouper shares and the 
commercial quota is 1.00 million lb (0.45 million kg), then that 
account would receive 10,000 lb (4,536 kg) of commercial red grouper 
quota). Although it is common for a single IFQ account with red grouper 
shares to be held by a single business, some businesses have multiple 
IFQ accounts with red grouper shares. As of February 19, 2020, 495 IFQ 
accounts held red grouper shares. These accounts and red grouper shares 
were owned by 436 businesses. Thus, it is assumed this proposed rule 
would directly regulate 436 commercial fishing businesses.
    A valid charter-headboat (for-hire) Gulf reef fish vessel permit is 
required to legally harvest red grouper in the Gulf. NMFS does not 
possess complete ownership data regarding businesses that hold charter-
headboat (for-hire) Gulf reef fish vessel permits, and thus potentially 
harvest red grouper. Therefore, it is not currently feasible to 
accurately determine affiliations between vessels and the businesses 
that own them. As a result, for purposes of this analysis, it is 
assumed each for-hire vessel is independently owned by a single 
business, which is expected to result in an overestimate of the actual 
number of for-hire fishing businesses directly regulated by this 
proposed rule.
    NMFS also does not have data indicating how many for-hire vessels

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actually harvest Gulf red grouper in a given year. However, in 2019, 
there were 1,277 vessels with valid charter-headboat Gulf reef fish 
vessel permits. Of these 1,277 vessels, 90 vessels are used primarily 
for commercial fishing purposes and thus are not considered for-hire 
fishing businesses in this analysis. Further, Gulf red grouper is only 
targeted and almost entirely harvested in waters off the west coast of 
Florida. Of the 1,277 vessels with valid charter-headboat Gulf reef 
fish vessel permits, 799 were homeported in Florida. Of these permitted 
vessels, 60 are primarily used for commercial fishing rather than for-
hire fishing purposes and thus are not considered for-hire fishing 
businesses. In addition, 48 of these permitted vessels are considered 
headboats. Headboats take a relatively large, diverse set of anglers to 
harvest a diverse range of species on a trip, and therefore do not 
typically target a particular species. Therefore, it is assumed that no 
headboat trips would be canceled, and thus no headboats would be 
directly affected as a result of this proposed rule. However, charter 
vessels often target red grouper. Of the 799 vessels with valid 
charter-headboat Gulf reef fish vessel permits that are homeported in 
Florida, 691 vessels are charter vessels. A recent study reported that 
76 percent of charter vessels with valid charter-headboat permits in 
the Gulf were active in 2017 (i.e., 24 percent were not fishing). A 
charter vessel would only be directly regulated by this proposed rule 
if it is fishing. Given this information, our best estimate of the 
number of charter vessels that are likely to harvest Gulf red grouper 
in a given year is 525, and thus this proposed rule is estimated to 
directly regulate 525 for-hire fishing businesses.
    For RFA purposes, NMFS has established a small business size 
standard for businesses, including their affiliates, whose primary 
industry is commercial fishing (50 CFR 200.2). A business primarily 
involved in the commercial fishing industry is classified as a small 
business if it is independently owned and operated, is not dominant in 
its field of operation (including its affiliates), and its combined 
annual receipts (revenue) are not in excess of $11 million for all of 
its affiliated operations worldwide. NMFS does not collect revenue data 
specific to commercial fishing businesses that have IFQ accounts; 
rather, revenue data are collected for commercial fishing vessels in 
general. It is not possible to assign revenues earned by commercial 
fishing vessels back to specific IFQ accounts and the businesses that 
possess them because quota is often transferred across many IFQ 
accounts before it is used by a vessel for harvesting purposes, and 
specific units of quota cannot be tracked. However, from 2014 through 
2018, the maximum annual gross revenue earned by a single vessel was 
about $2.39 million, which occurred in 2015. The average gross revenue 
per vessel was about $143,000 in that year. By 2018, the maximum and 
average gross revenue per vessel had decreased to about $1.04 million 
and $96,000, respectively. Based on this information, all commercial 
fishing businesses directly regulated by this proposed rule are 
determined to be small entities for the purpose of this analysis.
    For other industries, the Small Business Administration has 
established size standards for all major industry sectors in the U.S., 
including for-hire businesses (NAICS code 487210). A business primarily 
involved in for-hire fishing is classified as a small business if it is 
independently owned and operated, is not dominant in its field of 
operation (including its affiliates), and has annual receipts (revenue) 
not in excess of $8 million for all its affiliated operations 
worldwide. The maximum annual gross revenue for a single headboat in 
the Gulf was about $1.38 million in 2017. On average, annual gross 
revenue for headboats in the Gulf is about three times greater than 
annual gross revenue for charter vessels, reflecting the fact that 
businesses that own charter vessels are typically smaller than 
businesses that own headboats. Based on this information, all for-hire 
fishing businesses directly regulated by this proposed rule are 
determined to be small businesses for the purpose of this analysis.
    If implemented, NMFS expects this proposed rule to directly 
regulate 436 of the 532 businesses with IFQ accounts, or approximately 
82 percent of those commercial fishing businesses. Further, NMFS 
expects this proposed rule to directly regulate 525 of the 1,187 for-
hire fishing businesses valid charter/headboat permits in the Gulf reef 
fish fishery, or approximately 44 percent of those for-hire fishing 
businesses. NMFS has determined that, for the purpose of this analysis, 
all directly regulated commercial and for-hire fishing businesses are 
small entities. Based on this information, NMFS expects the proposed 
rule to affect a substantial number of small entities.
    Because revenue and cost data are not collected for the commercial 
fishing businesses that are expected to be directly regulated by this 
proposed rule, direct estimates of their economic profits are not 
available. However, economic theory suggests that annual allocation 
(quota) prices should reflect expected annual economic profits, which 
allows economic profits to be estimated indirectly. Further, the 436 
commercial fishing businesses that own red grouper shares, and 
therefore receive red grouper quota at the beginning of each calendar 
year, also own shares and receive quota in the other IFQ share 
categories i.e., red snapper, gag, shallow-water grouper, deep-water 
grouper, and tilefish. These businesses earn economic profits because 
of their ownership of these shares as well their red grouper shares. 
However, economic profits are only realized if the quota allocated to 
these businesses with shares is actually used for harvesting purposes 
(i.e., no economic profits will accrue unless the quota results in the 
production and sale of seafood). Because the average annual commercial 
landings of red grouper from 2014-2018 and the proposed red grouper 
commercial quota are almost identical, NMFS assumes that all of the red 
grouper commercial quota will be harvested in the foreseeable future. 
Similarly, because practically all of the commercial red snapper quota 
has been used for harvesting in recent years, NMFS assumes that all of 
the commercial red snapper quota allocated to these businesses will be 
harvested in the foreseeable future. However, based on 2015-2019 data, 
NMFS expects that only 84 percent of the deep-water grouper commercial 
quota, 50 percent of the gag commercial quota, 35 percent of the 
shallow-water grouper commercial quota, and 78 percent of the tilefish 
commercial quota allocated to these businesses will be used for 
harvesting in the foreseeable future. Given these quota utilization 
rates in combination with average annual allocation prices in 2019 and 
annual commercial quotas in 2020 by share category, total economic 
profits for commercial fishing businesses with red grouper shares are 
estimated to be at least $18.61 million. This estimate does not account 
for any economic profits that may accrue to commercial fishing 
businesses that own red grouper shares from the harvest of non-IFQ 
species. Such profits are likely to be small because harvest of IFQ 
species accounts for around 85 percent of commercial IFQ vessels' 
average annual gross revenue, and economic profits from the harvest of 
non-IFQ species tend to be much smaller than those from IFQ species. 
Given that there are 436 commercial fishing businesses that own red 
grouper shares, the average annual expected economic profit per

[[Page 2741]]

commercial fishing business is at least $42,700.
    However, most of these economic profits (82 percent) are the result 
of owning red snapper shares. Only approximately $1.77 million (or 9.5 
percent) of their economic profits are due to the ownership of red 
grouper shares. This proposed rule is only expected to affect economic 
profits from the ownership of red grouper shares. Specifically, the 
action that proposes to reduce the OFL, ABC, total ACL, and the 
commercial sector allocation of the total ACL results in a reduction of 
the red grouper commercial ACL from 3.16 million lb (1.43 million kg) 
to 2.53 million lb (1.15 million kg) and the commercial red grouper ACT 
(quota) from 3.00 million lb (1.36 million kg) to 2.40 million lb (1.09 
million kg). Given an annual allocation price of $.59/lb in 2019 for 
red grouper, this reduction in the commercial red grouper quota is 
expected to reduce economic profits to these commercial fishing 
businesses by $354,000, or about $812 per business. Thus, economic 
profit is expected to be reduced by no more than 1.9 percent on average 
per commercial fishing business.
    Based on the most recent information available, average annual 
profit is $26,514 per charter vessel. The action that modifies the 
sector allocations, OFL, ABC, and total ACL results in a reduction of 
the red grouper recreational ACL from 2.10 million lb (0.95 million kg) 
in MRIP-FES units to 1.73 million lb (0.78 million kg) in MRIP-FES 
units. The ACL reduction is expected to reduce the recreational season 
length by 12 days, and thereby cause the number of trips targeting red 
grouper on charter vessels to decrease by 665 angler trips. Net Cash 
Flow per Angler Trip (CFpA) is the best available estimate of profit 
per angler trip by charter vessels. CFpA on charter vessels is 
estimated to be $141 per angler trip. Thus, NMFS expects the estimated 
reduction in charter vessel profits from this action to be $93,723, or 
$179 per vessel.
    The action that proposes to increase the buffer between the 
recreational ACL and recreational ACT from 8 percent to 9 percent would 
decrease the recreational ACT from 1.59 million lb (0.72 million kg) to 
1.57 million lb (0.71 million kg). The ACT reduction is only germane if 
the recreational sector exceeds its ACL in the future, as that would 
trigger the post-season AM, causing the recreational sector to be 
constrained to the recreational ACT rather than the recreational ACL. 
Average annual landings in the recreational sector from 2016 through 
2019 are greater than the proposed recreational ACL, and so it is 
possible that the post-season AM may be triggered, causing the 
recreational sector, including the for-hire component, to be 
constrained to the ACT. If the post-season AM is triggered, the 
additional reduction in the recreational season length caused by this 
action is estimated to be 4 days, which NMFS expects to cause the 
number of trips targeting red grouper on charter vessels to decrease by 
an additional 204 angler trips. Thus, if the post-season AM is 
triggered, NMFS estimates that the reduction in charter vessel profits 
would be $28,764, or $55 per vessel.
    Based on the above, NMFS expects the total reduction in profits for 
charter vessels from this proposed rule to be no more than $122,487, or 
$234 per charter vessel. Thus, profit would potentially be reduced by 
approximately 0.9 percent on average per for-hire fishing business.
    Five alternatives, including the status quo, were considered for 
the proposed action to set the sector allocations for red grouper at 
59.3 percent for the commercial sector and 40.7 percent for the 
recreational sector, and set the OFL, ABC, total ACL, commercial ACL, 
and recreational ACL at 4.66 million lb (2.11 million kg), 4.26 million 
lb (1.93 million kg), 4.26 million lb (1.93 million kg), 2.53 million 
lb (1.15 million kg), and 1.73 million lb (0.78 million kg) in MRIP-FES 
units, respectively. The status quo alternative would have maintained 
the current sector allocations for red grouper at 76 percent for the 
commercial sector and 24 percent for the recreational sector, and 
maintained the OFL, ABC, total ACL, commercial ACL, and recreational 
ACL of 14.16 million lb (6.42 million kg), 13.92 million lb (6.31 
million kg), 4.16 million lb (1.89 million kg), 3.16 million lb (1.43 
million kg), and 1.00 million lb (0.45 million kg) in MRIP-CHTS units, 
respectively. In general, the status quo alternative was not selected 
because it is not based on the best scientific information available. 
More specifically, the status quo alternative would continue to use 
estimates based on MRIP-CHTS data rather than MRIP-FES data for the 
recreational sector, even though MRIP-FES data have been determined to 
be the best scientific information available for estimating and 
monitoring landings and effort in the recreational sector. The status 
quo alternative would have also set OFL and ABC above the values 
produced by the most recent stock assessment and recommended by the 
Council's SSC.
    A second alternative would have maintained the current sector 
allocations for red grouper at 76 percent for the commercial sector and 
24 percent for the recreational sector, and resulted in an OFL, ABC, 
total ACL, commercial ACL, and recreational ACL of 5.35 million lb 
(2.43 million kg), 4.90 million lb (2.22 million kg), 4.90 million lb 
(2.22 million kg), 3.72 million lb (1.69 million kg), and 1.18 million 
lb (0.54 million kg) in MRIP-FES units, respectively. This alternative 
was not selected as it would have resulted in considerably lower net 
economic benefits to the Nation compared to the proposed action. In 
addition, because of the conversion from MRIP-CHTS to MRIP-FES, the 
second alternative would have also effectively resulted in a 
significant reallocation of the total ACL from the recreational sector 
to the commercial sector, thereby causing a much larger, adverse 
proportional effect on the recreational sector relative to the 
commercial sector compared to the proposed action, which was not 
considered to be fair and equitable.
    A third alternative would have set the sector allocations for red 
grouper at 68.7 percent for the commercial sector and 31.3 percent for 
the recreational sector, and resulted in an OFL, ABC, total ACL, 
commercial ACL, and recreational ACL of 5.03 million lb (2.28 million 
kg), 4.60 million lb (2.09 million kg), 4.60 million lb (2.09 million 
kg), 3.16 million lb (1.43 million kg), and 1.44 million lb (0.65 
million kg) in MRIP-FES units, respectively. Similar to the second 
alternative, the third alternative was not selected as it would have 
resulted in considerably lower net economic benefits to the Nation 
compared to the proposed action. Further, the third alternative would 
have maintained the current commercial ACL despite the required 
reduction in the total ACL. While this would have resulted in no 
effects on the commercial sector, it would have also resulted in a 
reallocation of the total ACL from the recreational sector to the 
commercial sector and thereby caused large adverse effects on the 
recreational sector compared to the proposed action, which was not 
considered to be fair and equitable.
    A fourth alternative would have set the sector allocations for red 
grouper at 60.5 percent for the commercial sector and 39.5 percent for 
the recreational sector, and resulted in an OFL, ABC, total ACL, 
commercial ACL, and recreational ACL of 4.70 million lb (2.13 million 
kg), 4.30 million lb (1.95 million kg), 4.30 million lb (1.95 million 
kg), 2.60 million lb (1.18 million kg), and 1.70 million lb (0.77 
million kg) in MRIP-FES units, respectively. A fifth alternative would 
have set the sector allocations for red grouper at 59.7

[[Page 2742]]

percent for the commercial sector and 40.3 percent for the recreational 
sector, and resulted in an OFL, ABC, total ACL, commercial ACL, and 
recreational ACL of 4.67 million lb (2.12 million kg), 4.28 million lb 
(1.94 million kg), 4.28 million lb (1.94 million kg), 2.56 million lb 
(1.16 million kg), and 1.72 million lb (0.78 million kg) in MRIP-FES 
units, respectively. The fourth and fifth alternatives were not 
selected because they did not use the same time series of years as the 
original sector allocation and therefore would not as accurately 
reflect the historical participation of the recreational and commercial 
sectors in the fishery, which is contrary to the Council's objectives. 
These alternatives were also not selected as they resulted in slightly 
lower net economic benefits to the Nation compared to the proposed 
action.
    Two alternatives, including the status quo, were considered for the 
proposed action to maintain the buffer between the commercial ACL and 
commercial ACT of 5 percent and increase the buffer between the 
recreational ACL and recreational ACT from 8 percent to 9 percent. The 
status quo alternative would have maintained the buffer between the 
commercial ACL and commercial ACT of 5 percent and maintained the 
buffer between the recreational ACL and recreational ACT of 8 percent. 
The status quo alternative was not selected because the current 
recreational buffer is based on MRFSS data, which are no longer used 
for quota monitoring because they are no longer the best scientific 
information available.
    The second alternative would have reduced the commercial buffer 
from 5 percent to 0 percent and increased the recreational buffer from 
8 percent to 9 percent. Both the red grouper and gag share categories 
in the commercial grouper-tilefish IFQ program have a multi-use 
provision that allows a portion of the red grouper quota to be 
harvested under the gag allocation, and a portion of the gag quota to 
be harvested under the red grouper allocation. Each year, the program 
assigns a portion of each shareholder's red grouper and gag's 
allocations to the multi-use allocation category. The intent of the 
multi-use provision is to provide for allocation if either gag or red 
grouper are landed as incidental catch. The second alternative was not 
selected because, based on recent data, the gag multi-use allocation 
would be zero. As a result, red grouper could not be landed with gag 
allocation, which is contrary to the purpose of the multi-use provision 
in the grouper-tilefish IFQ program.

List of Subjects in 50 CFR Part 622

    Annual catch limit, Fisheries, Fishing, Gulf, Red grouper, Reef 
fish.

    Dated: January 10, 2022.
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 622 is 
proposed to be amended as follows:

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

0
1. The authority citation for part 622 continues to read as follows:

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

0
2. In Sec.  622.39, revise paragraph (a)(1)(iii)(C) to read as follows:


Sec.  622.39  Quotas.

* * * * *
    (a) * * *
    (1) * * *
    (iii) * * *
    (C) Red grouper--2.40 million lb (1.09 million kg).
* * * * *
0
3. In Sec.  622.41, revise the last sentence of paragraph (e)(1) and 
revise paragraph (e)(2)(iv) to read as follows:


Sec.  622.41  Annual catch limits (ACLs), annual catch targets (ACTs), 
and accountability measures (AMs).

* * * * *
    (e) * * *
    (1) * * * The commercial ACL for red grouper, in gutted weight, is 
2.53 million lb (1.15 million kg).
    (2) * * *
    (iv) The recreational ACL for red grouper, in gutted weight, is 
1.73 million lb (0.78 million kg). The recreational ACT for red 
grouper, in gutted weight, is 1.57 million lb (0.71 million kg).
* * * * *
[FR Doc. 2022-00646 Filed 1-18-22; 8:45 am]
BILLING CODE 3510-22-P