[Federal Register Volume 88, Number 27 (Thursday, February 9, 2023)]
[Proposed Rules]
[Pages 8592-8633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01333]



[[Page 8591]]

Vol. 88

Thursday,

No. 27

February 9, 2023

Part III





Department of Commerce





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National Oceanic and Atmospheric Administration





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50 CFR Part 679





Fisheries of the Exclusive Economic Zone Off Alaska; Amendment 122 to 
the Fishery Management Plan for Groundfish of the Bering Sea and 
Aleutian Islands Management Area; Pacific Cod Trawl Cooperative 
Program; Proposed Rule

  Federal Register / Vol. 88 , No. 27 / Thursday, February 9, 2023 / 
Proposed Rules  

[[Page 8592]]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[230118-0016]
RIN 0648-BL08


Fisheries of the Exclusive Economic Zone Off Alaska; Amendment 
122 to the Fishery Management Plan for Groundfish of the Bering Sea and 
Aleutian Islands Management Area; Pacific Cod Trawl Cooperative Program

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 to implement Amendment 122 to the 
Fishery Management Plan (FMP) for Groundfish of the Bering Sea and 
Aleutian Islands Management Area (BSAI). Amendment 122 would establish 
the Pacific Cod Trawl Cooperative Program (PCTC Program or Program) to 
allocate Pacific cod harvest quota to qualifying groundfish License 
Limitation Program (LLP) license holders and qualifying processors. The 
PCTC Program would be a limited access privilege program (LAPP) for the 
harvest of Pacific cod in the BSAI trawl catcher vessel (CV) sector. 
This proposed action is necessary to increase the value of the fishery, 
minimize bycatch to the extent practicable, provide for the sustained 
participation of fishery-dependent communities, ensure the 
sustainability and viability of the resource, and promote safety and 
stability in the harvesting and processing sectors. This action is 
intended to promote the goals and objectives of the Magnuson-Stevens 
Fishery Conservation and Management Act (Magnuson-Stevens Act), the 
BSAI FMP, and other applicable law.

DATES: Submit comments on or before March 13, 2023.

ADDRESSES: You may submit comments, identified by NOAA-NMFS-2022-0072, 
by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to https://www.regulations.gov and enter NOAA-NMFS-2022-0072 in the Search box. 
Click on the ``Comment'' icon, complete the required fields, and enter 
or attach your comments.
     Mail: Submit written comments to the Assistant Regional 
Administrator, Sustainable Fisheries Division, Alaska Region NMFS. 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 would 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 
would be publicly accessible. NMFS will accept anonymous comments 
(enter ``N/A'' in the required fields if you wish to remain anonymous).
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted via mail to NMFS Alaska Region, P.O. Box 
21668, Juneau, AK 99802-1668, Attn: Stephanie Warpinski; or online at 
www.reginfo.gov/public/do/PRAMain. Find the particular information 
collections online by selecting ``Currently under 30-day Review--Open 
for Public Comments'' or by using the search function.
    Electronic copies of the Environmental Assessment, the Regulatory 
Impact Review, and the Social Impact Analysis (collectively referred to 
as the ``Analysis''), and the draft Finding of No Significant Impact 
prepared for this proposed rule may be obtained from https://www.regulations.gov or from the NMFS Alaska Region website at https://www.fisheries.noaa.gov/region/alaska.

FOR FURTHER INFORMATION CONTACT: Stephanie Warpinski, 907-586-7228 or 
[email protected].

SUPPLEMENTARY INFORMATION:

Authority for Action

    NMFS manages the groundfish fisheries in the exclusive economic 
zone (Federal waters) of the BSAI under Federal regulations 
implementing the BSAI FMP. The North Pacific Fishery Management Council 
(Council) prepared the BSAI FMP under the authority of the Magnuson-
Stevens Act, 16 U.S.C. 1801 et seq. Regulations governing U.S. 
fisheries and implementing the BSAI FMP appear at 50 CFR parts 600 and 
679.
    A notice of availability (NOA) for Amendment 122 was published in 
the Federal Register on December 30, 2022 (87 FR 80519, December 30, 
2022), with comments invited through February 28, 2023. All relevant 
written comments received by the end of the comment period (See DATES), 
whether specifically directed to the NOA or this proposed rule, will be 
considered by NMFS in the approval/disapproval decision for Amendment 
122. Commenters do not need to submit the same comments on both the NOA 
and this proposed rule. Comments submitted on this proposed rule by the 
end of the comment period (See DATES) will be considered by NMFS in our 
decision to implement measures recommended by the Council and will be 
addressed in the response to comments in the final rule.

I. Background of Pacific Cod Management in the BSAI

A. History of Pacific Cod Management in BSAI

    Pacific cod (Gadus macrocephalus) is one of the most abundant and 
valuable groundfish species harvested in the BSAI. Vessels harvest 
Pacific cod using trawl and non-trawl gear. Non-trawl gear includes 
hook-and-line, jig, and pot gear. Vessels harvesting BSAI Pacific cod 
operate as catcher vessels (CVs) that harvest and deliver the fish for 
processing or as catcher/processors (C/Ps) that harvest and process the 
catch on board.
    The BSAI FMP and implementing regulations require that, after 
consultation with the Council, NMFS specify an overfishing level (OFL), 
an acceptable biological catch (ABC), and a total allowable catch (TAC) 
for each target species or species group of groundfish, including 
Pacific cod, on an annual basis. The OFL is the level above which 
overfishing is occurring for a species or species group. The ABC is the 
level of a species' annual catch that accounts for the scientific 
uncertainty in the estimate of OFL and any other scientific 
uncertainty. Under the BSAI FMP, the ABC is set below the OFL. The TAC 
is the annual catch target for a species or species group, derived from 
the ABC by considering social and economic factors and management 
uncertainty, and in the case of BSAI Pacific cod, after considering any 
harvest allocations for guideline harvest level (GHL) fisheries managed 
by the State of Alaska (State) and occurring only within state waters. 
Under the BSAI FMP, the TAC must be set lower than or equal to the ABC.
    The OFLs, ABCs, and TACs for BSAI groundfish are specified through 
the annual harvest specification process. A detailed description of the 
annual harvest specification process is

[[Page 8593]]

provided in the final 2022 and 2023 harvest specifications for 
groundfish of the BSAI (87 FR 11626, March 2, 2022). The annual harvest 
specification process for BSAI Pacific cod is briefly summarized here. 
Specific examples of Pacific cod OFLs, ABCs, TACs, and other 
apportionments of Pacific cod used in this preamble are based on the 
2022 specifications from the final 2022 and 2023 harvest specifications 
for groundfish of the BSAI, unless otherwise noted.
    For Pacific cod, the harvest specifications establish separate 
OFLs, ABCs, and TACs for the Bering Sea (BS) subarea and the Aleutian 
Islands (AI) subarea of the BSAI. As noted above, before the Pacific 
cod TACs are established, the Council and NMFS consider social and 
economic factors and management uncertainty, as well as two factors 
that are particularly relevant to BSAI Pacific cod: the Pacific cod 
state waters GHL fisheries and an overall limit on the maximum amount 
of TAC that can be specified for all BSAI groundfish species combined.
    Once the groundfish TACs are established, regulations at 50 CFR 
679.20(a)(7)(i) allocate 10.7 percent of the BS Pacific cod TAC and 
10.7 percent of the AI Pacific cod TAC to the Community Development 
Quota (CDQ) Program for the exclusive harvest by Western Alaska CDQ 
groups. Section 305(i) of the Magnuson-Stevens Act authorizes six 
nonprofit corporations called CDQ groups representing 65 communities to 
receive exclusive harvest privileges of groundfish, including Pacific 
cod, and specifies the methods for allocating these harvest privileges.
    After subtraction of the CDQ allocation from each TAC, NMFS 
combines the remaining BS and AI TACs into one BSAI non-CDQ Pacific cod 
TAC, which is available for harvest by nine non-CDQ fishery sectors. 
BSAI Pacific cod have been fully allocated to these sectors since 2008 
with the implementation of Amendment 85 to the BSAI groundfish FMP (72 
FR 50787, September 4, 2007). Regulations at Sec.  679.20(a)(7)(ii)(A) 
define the nine Pacific cod non-CDQ fishery sectors in the BSAI and 
specify the percentage allocated to each. The non-CDQ fishery sectors 
are defined by a combination of gear type (e.g., trawl, hook-and-line), 
operation type (i.e., CV or CP), and vessel size categories (e.g., 
vessels greater than or equal to 60 ft in length overall). Through the 
annual harvest specifications process, NMFS allocates an amount of the 
combined BSAI non-CDQ TAC to each of these nine non-CDQ fishery 
sectors. The non-CDQ fishery sectors and the percentage of the BSAI 
non-CDQ Pacific cod TAC allocated to each sector are shown in Table 1 
below.

 Table 1--Allocations of the BSAI Non-CDQ Pacific Cod TAC to the Non-CDQ
                             Fishery Sectors
------------------------------------------------------------------------
                                                            Percentage
                                                           allocation of
                 Non-CDQ fishery sector                    the BSAI non-
                                                              CDQ TAC
------------------------------------------------------------------------
Hook-and-line CVs greater than or equal to 60 ft length              0.2
 overall (LOA)..........................................
Jig gear................................................             1.4
Pot C/Ps................................................             1.5
Hook-and-line and pot CVs less than 60 ft LOA...........             2.0
American Fisheries Act (AFA) trawl C/Ps.................             2.3
Pot CVs greater than or equal to 60 ft LOA..............             8.4
Non-AFA trawl C/Ps (Amendment 80 C/Ps)..................            13.4
Trawl CVs...............................................            22.1
Hook-and-line C/Ps......................................            48.7
------------------------------------------------------------------------

    Allocations of Pacific cod to the CDQ Program and to the non-CDQ 
fishery sectors are further apportioned by seasons. Season dates for 
the CDQ and non-CDQ fishery sectors are established at Sec.  
679.23(e)(5). In general, regulations apportion trawl gear allocations 
among three seasons that correspond to January 20-April 1 (A season), 
April 1-June 10 (B season), and June 10-November 1 (C season) of the 
year. The specific season dates also are provided in the annual harvest 
specifications for groundfish of the BSAI. Depending on the specific 
CDQ Program or non-CDQ fishery sector allocation, between 40 and 70 
percent of the Pacific cod allocation is apportioned to the A season, 
which is historically the most lucrative fishing season due to the 
presence of valuable roe in the fish and the good quality of the flesh 
during that time of year.
    As noted in Table 1, the trawl CV sector is apportioned 22.1 
percent of the BSAI Pacific cod non-CDQ TAC, which is further divided 
into seasonal allowances between the A, B, and C seasons. A season is 
issued 74 percent of the trawl CV sector's total apportionment, B 
season is issued 11 percent, and C season is issued 15 percent. The 
trawl CV sector impacted by the implementation of the PCTC Program 
would include all trawl CVs that are assigned to an LLP license with a 
trawl gear endorsement for the BS and/or AI.
    After NMFS deducts estimated incidental catch from the trawl CV 
sector apportionment, each seasonal allowance is assigned to the trawl 
CV sector as a BSAI directed fishing allowance (DFA). The DFA for the A 
and B seasons is the amount that would be available for harvest by the 
PCTC program cooperatives under the proposed LAPP. The DFA for the C 
season would remain available for harvest as a limited access fishery 
open to all CVs with the required trawl gear and area endorsements on 
the LLP license assigned to the vessel. Because the non-CDQ sector 
allocations continue to be defined BSAI-wide, sectors remain free to 
redeploy between the two areas. However, if the non-CDQ portion of the 
TAC in either sub-area (BS or AI) is reached NMFS will close directed 
fishing for Pacific cod in that subarea.

B. Groundfish License Limitation Program (LLP) Licenses

    The Groundfish License Limitation Program (LLP) was implemented in 
1998 (63 FR 52642, Oct. 1, 1998) and issued a limited number of LLP 
licenses to qualifying participants based on historical participation 
in the Federal groundfish fisheries off Alaska. The Council and NMFS 
have long sought to control the amount of fishing effort in the BSAI 
groundfish fisheries to ensure that the fisheries are sustainably 
managed and do not exceed established biological thresholds. One of the 
measures used by the Council and NMFS to control fishing effort, 
including in the BSAI Pacific cod

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fishery, is the LLP. A groundfish LLP license authorizes a vessel to 
participate in a directed fishery for groundfish in the BSAI in 
accordance with specific area and species endorsements, vessel and gear 
designations, and the maximum length overall (MLOA), or any exemption 
from the MLOA, specified on the license. With some limited exceptions, 
the LLP requires that each vessel that participates in federally 
managed groundfish fisheries off Alaska be designated on a groundfish 
LLP license. In other words, an LLP license is generally required to 
participate in the BSAI groundfish fisheries. The LLP is authorized in 
Federal regulations at 50 CFR 679.4(k), definitions relevant to the 
program are at Sec.  679.2, and prohibitions are at Sec.  679.7.
    All Federal Pacific cod harvesting activity in the BSAI requires an 
LLP license and the correct endorsements. The Council elected to have 
LLP license holders and eligible processors receive PCTC Program Quota 
Share (QS) instead of vessel owners.

C. Transferable AI Endorsements

    Amendment 92 to the BSAI FMP (74 FR 41080, August 14, 2009) issued 
new AI area endorsements for trawl CV LLP licenses if minimum recent 
landing requirements in the AI were met. Under this action, NMFS issued 
AI trawl endorsements to (1) non-AFA catcher vessels less than 60 ft 
LOA, if those vessels made at least 500 metric tons (mt) of landings of 
Pacific cod in State of Alaska (State) waters adjacent to the Aleutian 
Islands Subarea during 2000 through 2006 (i.e. in the parallel 
fishery); and (2) non-AFA catcher vessels equal to or greater than 60 
feet LOA if those vessels made at least one landing in State waters 
during the Federal groundfish season in the Aleutian Islands Subarea 
and made at least 1,000 mt of Pacific cod landings in the BSAI during 
2000 through 2006. Amendment 92 intended to recognize the recent 
participation by CVs in the AI by allowing those vessels to extend 
their fishing operations to Federal waters using trawl endorsed LLP 
licenses.
    The AI endorsements issued under Amendment 92 were intended to 
facilitate shoreside deliveries of Pacific cod to AI communities and 
provide additional harvest opportunities for non-AFA trawl vessels who 
had demonstrated a dependence on AI groundfish resources. The AI 
endorsements issued to LLP licenses used by non-AFA trawl CVs less than 
60 ft are severable from the LLP license they were initially issued and 
transferable to another LLP licenses with a MLOA under 60 ft. The 
transferability provision was intended to allow smaller vessels 
operational flexibility and avoid stranding an AI endorsement on an LLP 
license being used by a vessel that no longer fished in the AI. No 
other area endorsement in the LLP can be transferred separately from an 
LLP license.
    NMFS modified the LLP license transfer regulations to clarify the 
process for transferring an AI endorsement independent of the LLP 
license. As part of that application process, the person would need to 
specify the LLP license to which the transferred AI area endorsement 
would be assigned.

D. Limited Access Privilege Programs

    Section 303A of the Magnuson-Stevens Act authorizes the 
establishment of Limited Access Privilege Programs (LAPPs) that 
allocate limited access privileges, such as fishing quota, to a closed 
class of participants. The Council has recommended and NMFS has 
implemented LAPPs to address a wide range of fishery management 
objectives, including providing stability in fishery harvests, 
resolving allocative disputes, increasing the value of the fishery, 
minimizing bycatch to the extent practicable, providing for the 
sustained participation of fishery-dependent communities, and promoting 
safety. Another example of a North Pacific LAPP is the Central Gulf of 
Alaska (GOA) Rockfish Program. An extensive discussion of LAPPs can be 
found in sections 2.5 and 2.9.8 of the Analysis (see ADDRESSES).
    By allocating quota shares and issuing exclusive harvest privileges 
to fishing cooperatives, a LAPP allows vessel operators to make 
operational choices to improve safety, reduce bycatch, and reduce 
discard of fish because the strong incentive to maximize catch in the 
minimum amount of time has been reduced. Vessel operators can choose to 
fish in a slower, less wasteful fashion, use modified gear with a lower 
harvest rate but which reduces bycatch, coordinate with other vessel 
operators to avoid areas of high bycatch, or otherwise operate in ways 
that limit bycatch and increase efficiency.
    LAPPs can also improve the profitability of participating fishing 
operations. In most cases, LAPPs provide harvesters greater flexibility 
in tailoring their fishing operations to specific fisheries, which can 
reduce operational costs. Additionally, vessel operators may avoid 
costly improvements in vessel size or fishing power designed to 
outcompete other harvesters in a race for fish. Slower fishing rates 
can improve product handling and quality and increase the ex-vessel 
price of the fish delivered to the processor. Vessel operators can also 
choose to consolidate less profitable fishing operations onto fewer 
vessels through a cooperative system.
    LAPPs can increase the costs of entering the fishery substantially 
because the expected long-term profits from the QS assigned to the 
permits increase their value, and, in most circumstances, permits must 
be purchased prior to entry. Increased cost of entry may limit the 
ability of persons without the financial wherewithal to purchase the 
permits or QS necessary to participate in these fisheries. 
Consolidation can limit employment opportunities as well, if fewer 
vessels are used to harvest the quota. Compliance costs can also 
increase to ensure that NMFS can monitor the harvesting and processing 
of fish. Administration of LAPPs typically requires greater effort and 
cost than non-LAPP fisheries due to the greater precision in catch 
accounting required to track the harvest of fish and proper debiting of 
accounts. Participants in LAPPs may also use their excess fishing 
capacity to expand operations into other fisheries that are not managed 
by LAPPs and increase the race for fish in those fisheries unless they 
are constrained. These and other effects have been addressed in the 
design of previous LAPPs by limiting the amount of consolidation in the 
fishery through caps on the ownership and use of QS.

E. PCTC Program Overview

    Based on experience with past LAPPs, and after weighing the 
potential advantages and disadvantages, the Council unanimously 
recommended the PCTC Program at its October 2021 meeting to reduce 
bycatch and improve the safety of fishery participants while increasing 
the potential for greater economic returns to those holding the harvest 
privileges.
    The Council had previously adopted a statement of purpose and need 
for this action, emphasizing that conditions in the fishery had 
resulted in a race for fish with a number of negative consequences. 
This proposed Program would be responsive to that statement of purpose 
and need by slowing the race for fish. This Program would provide 
incentives to increase the length of the directed fishing season and 
allow deliveries to be distributed over a longer timeframe, which would 
benefit both harvesters and processors. The current fishery management 
system, in which harvesters compete with each other for a portion of 
the Pacific cod TAC,

[[Page 8595]]

incentivizes harvesters to fish in weather conditions that could be 
unsafe, and this incentive would be reduced or avoided under the 
proposed LAPP. Several conditions warranted this proposed change in 
management, including a decline in Pacific cod TAC, an increase in the 
number of LLP licenses (and associated vessels) participating in this 
sector and the risk of additional entrants, the compressed length of 
the fishery in recent years, the decreased product quality caused by a 
race for fish in recent years, need to minimize bycatch, and safety 
concerns.
    In response, the Council recommended, and NMFS proposes the PCTC 
Program with the overarching objectives of increasing the value of the 
fishery, minimizing bycatch to the extent practicable, providing for 
the sustained participation of fishery-dependent communities, and 
promoting safety in the harvesting and processing sectors. The PCTC 
Program proposes a complex suite of measures to ensure the goals of the 
Program are met and improve fishery conditions for all participants. 
The Program would require participants holding QS to form harvesting 
cooperatives in association with an eligible processor to harvest the 
annual harvest privilege of Pacific cod. This Program would also 
require cooperatives to set-aside a portion of their allocation for 
delivery to an Aleutian Island shoreplant. A shoreplant is a land-based 
processing plant and is a subset of the term ``shoreside processor'' 
which is defined in Sec.  679.2 to include processing vessels that are 
moored or otherwise fixed in a location (i.e., stationary floating 
processors), but not necessarily located on land.
    The following section provides an overview of the complex suite of 
measures included in the proposed Program. Each Program element will be 
addressed in additional detail in subsequent sections of this preamble.
1. Pacific Cod Allocations and Prohibited Species Catch (PSC) Limits
    The PCTC Program would allocate QS to qualifying LLP license 
holders and processors based on their qualifying catch and processing 
history during the BSAI trawl CV sector A and B season for the Pacific 
cod fishery. The Pacific cod QS allocations would be based on 
qualifying catch or processing history as recommended by the Council. 
In addition, aggregate PSC limits for halibut and crab would be 
established through the annual harvest specification process for 
participants in the PCTC Program. Allocations of Pacific cod and PSC 
limits are discussed in further detail in section II of the preamble.
2. PCTC Program Quota Share
    The PCTC Program would issue QS to qualified LLP licenses that had 
qualifying catch history of BSAI Pacific cod during the qualifying 
years, and to processors based on their processing history during the 
qualifying years. The Council selected 2009 to 2019 as the qualifying 
years for processors and most LLP licenses, with the additional years 
of 2004 through 2009 for LLP licenses with transferable AI 
endorsements. In making initial allocations of QS, NMFS would look at 
targeted landings of BSAI Pacific cod from a Federal fishery during the 
qualifying years, and then determine what proportion of those landings 
were authorized by each participating LLP license, and which proportion 
was delivered to each participating processor. Targeted species are 
those species retained in an amount greater than any other species for 
which a TAC is specified pursuant to Sec.  679.20(a)(2). To use their 
QS, LLP license holders would be required to join a PCTC Program 
cooperative and processors would be required to associate with a 
cooperative. Trawl CVs eligible to participate in the proposed Program 
include all trawl CVs that are named on an LLP license with a trawl 
gear endorsement and BS and/or AI area endorsement. Section II in the 
preamble further discusses QS and participants.
3. Trawl CV Sector
    The PCTC Program allocations would be harvested by trawl CVs that 
join a PCTC Program cooperative. The trawl CV sector that would be 
eligible to participate in the proposed Program includes all trawl CVs 
designated on an LLP license with BS and/or AI area endorsements, 
including both American Fisheries Act (AFA) and non-AFA trawl CVs.
    Most AFA CVs rely heavily on pollock harvested in the BS, but 
Pacific cod is the second most important species in terms of volume for 
these vessels in aggregate. While nearly all the groundfish harvested 
by the larger AFA vessels is delivered to shoreside processors, many of 
the smaller AFA vessels deliver their catch to a mothership. AFA 
vessels are categorized as either exempt or non-exempt; AFA exempt 
means that they are not limited based on their catch history by 
sideboards, and AFA non-exempt means that they are limited by 
sideboards based on their catch history. The harvest of BSAI Pacific 
cod by AFA trawl CVs is currently managed through private inter-
cooperative agreements.
    Non-AFA trawl CVs are typically between 60 ft and 125 ft, but 
occasionally, vessels less than 60 ft participate in the sector. 
Fisheries important to non-AFA trawl CVs include BSAI Pacific cod, 
groundfish in the GOA, halibut IFQ (using longline gear), and salmon in 
the state commercial seine fisheries.
    A total of 114 LLP licenses are assigned a trawl CV endorsement for 
the BS. Of those 114 LLP licenses, 42 also have an AI endorsement. One 
LLP license is endorsed only for the AI, and that license has both a 
trawl endorsement and a hook-and-line endorsement. Annual estimates of 
the trawl CV sector's gross ex-vessel value for Pacific cod are 
provided in Section 2.8.7 of the Analysis.
    Given that initial allocations under this proposed rule will be 
based on historical participation, no substantial shifts in patterns of 
fishery landings between communities are anticipated, nor are 
substantial shifts expected in the accompanying patterns of revenue 
accruing to municipalities in Alaska from local raw fish taxes or 
shared state fishery business taxes.
4. Processor Sector
    The PCTC program would allocate QS to eligible processors, both 
shoreside and C/Ps acting as motherships, which could serve to 
stabilize landings in communities in proportion to their qualifying 
history of BSAI Pacific cod processing.
    Eligible processors would be allocated a percentage of QS based on 
their processing history that would function to promote stability in 
the processing sector. Processors eligible to receive QS would include 
active processors who hold an active FFP or FPP. Eligible processors 
would be issued their QS on a new QS permit. Processor-issued QS would 
represent 22.5 percent of the total PCTC Program CQ each year.
    Section 2.9.5 of the Analysis provides a count of the years 
processing firms were active (received deliveries of targeted Federal 
BSAI Pacific cod from trawl CVs). These counts represent all the 
processing firms (including C/Ps that are no longer eligible to process 
Pacific cod as a mothership) that were reported in the NMFS Catch 
Accounting System (CAS) data. Preamble sections II.E and VII.B and C 
describe the processor sector in further detail.
5. Allocations of TAC in the PCTC Program
    Under this proposed PCTC Program, 22.1 percent of the annual BSAI 
Pacific cod non-CDQ TAC would continue to be allocated to the trawl CV 
sector using

[[Page 8596]]

the current seasonal apportionments. Of that 22.1 percent, a portion is 
allocated for directed fishing by trawl CVs targeting Pacific cod (as 
DFAs), and another portion is reserved as an incidental catch allowance 
(ICA) for Pacific cod caught as bycatch in other BSAI trawl CV 
groundfish fisheries. Under the PCTC Program, A and B season DFAs would 
be issued as CQ to PCTC program cooperatives. Of the total PCTC Program 
annual allocations, 22.5 percent of CQ would be derived from QS 
allocated to processors and 77.5 percent would be derived from QS 
allocated to LLP license holders. Section IV discusses CQ and PCTC 
Program cooperatives in further detail. The C season would continue to 
be managed as a limited access fishery open to any trawl CV with the 
required area endorsements. Section VI.B of the preamble discusses the 
C season in further detail.
6. PCTC Program Cooperatives
    The PCTC Program would authorize the formation of harvester 
cooperatives in association with an eligible processor. A cooperative 
would be formed by holders of qualified LLP licenses with trawl CV 
Pacific cod QS, in association with processors. Each LLP license could 
be assigned to only one cooperative. Each year, a cooperative 
representative would be required to submit an Application for PCTC 
Program Cooperative Quota. CQ would be issued to each cooperative by 
NMFS based on the aggregate QS of the cooperative members and 
associated processors. Cooperative associations could change on an 
annual basis without penalty. Cooperatives would be required to 
identify a list of trawl CVs eligible to harvest a portion of that 
cooperative's CQ in the annual cooperative application. Any trawl CV 
named on an LLP license with a BS and/or AI trawl endorsement could be 
identified as an eligible harvester within a PCTC cooperative, 
regardless of whether the LLP license was issued QS. Section IV in this 
preamble further describes cooperatives in the PCTC Program.
7. AI CQ Set-Aside
    The PCTC Program would require cooperatives to reserve 12 percent 
of the BSAI A season trawl CV sector CQ as a set-aside for delivery to 
an Aleutian Islands shoreplant if the City of Adak or the City of Atka 
files a notice of intent to process that year. The set-aside would be 
in effect during the A and B seasons and any remaining portion of the 
AI CQ set-aside would be reallocated to cooperatives in the same 
proportion as the initial allocation if the intent to process is 
withdrawn during the A or B season by the representative of the City of 
Adak or the City of Atka. NMFS would require an inter-cooperative 
agreement that describes how the set-aside will be administered by the 
cooperatives to ensure that harvests from the BS do not exceed the 
minimum set-aside, how the cooperatives intend to harvest the set-
aside, and how cooperatives would ensure that CVs less than 60 ft LOA 
assigned to an LLP license with a transferable AI trawl endorsement 
have the opportunity to harvest 10 percent of the AI set-aside for 
delivery to an Aleutian Island shoreplant. A cooperative intending to 
harvest any amount of the set-aside would be required to provide the 
cooperative's plan for coordinating harvest and delivery of the set-
aside with an Aleutian Island shoreplant in the annual cooperative 
application.
8. C Season Limited Access Fishery
    The PCTC Program would allocate only the A and B season non-CDQ 
Pacific cod trawl CV DFA to cooperatives. The C season non-CDQ Pacific 
cod trawl CV DFA, which accounts for approximately 15 percent of the 
annual trawl CV sector allocation, would remain as a trawl CV limited 
access fishery open to any trawl CV with a BS and/or AI area trawl 
endorsement.
9. Use Caps
    The PCTC program would include ownership and use caps to prevent a 
permit holder from acquiring an excessive share of the fishery as 
required under MSA Section 303A(c)(5)(D). No person would be permitted 
to hold more than 5 percent of harvester-issued QS or 20 percent of 
processor-issued QS. In addition, no vessel would be able to harvest 
more than 5 percent of the annual CQ, and no company would be able to 
process more than 20 percent of CQ. The PCTC Program would also include 
legacy exemptions for persons over these ownership and use caps at the 
time of PCTC Program implementation, allowing participants to maintain 
levels of historical participation rather than forcing divestiture.
10. Gulf of Alaska Sideboard Limits
    The PCTC Program includes GOA groundfish sideboard limits for LLP 
licenses that receive allocations of QS. The Program would change the 
AFA non-exempt GOA groundfish sideboard and halibut PSC limits for all 
non-exempt AFA CVs and associated LLP licenses based on the GOA fishing 
activity of these vessels in the aggregate during the PCTC Program 
qualifying years. GOA halibut PSC limits would be managed as an annual 
limit for all AFA non-exempt CVs and associated LLP licenses. The 
proposed PCTC Program does not change existing sideboard exemptions for 
AFA GOA--exempt CVs and does not add sideboard limits for non-AFA trawl 
CVs in the GOA.
    However, holders of LLP licenses that authorize these categories of 
vessels will not be permitted to lease CQ derived from their LLP 
licenses as a condition of benefiting from a GOA sideboard exemption. 
If the vessel assigned to the qualified GOA sideboard-exempt LLP 
license does not fish in the GOA during the calendar year--with the 
exception of fishing in the Central GOA Rockfish Program--the LLP 
license holder would be able to lease CQ generated by their LLP license 
for that calendar year. In addition, holders of LLP licenses that 
authorized GOA sideboard-exempt CVs with less than 300 mt of average 
annual qualifying BSAI Pacific cod catch history would be able to lease 
CQ generated by their LLP license.
11. Monitoring and Enforcement
    All CVs harvesting CQ and making deliveries to a shoreside 
processor would be in the full observer coverage category, which 
requires the vessel to maintain observer coverage on 100 percent of its 
fishing trips. The PCTC Program would maintain the current observer 
coverage exception for CVs delivering unsorted codends to motherships 
specified at Sec.  679.50(a). CVs in the full observer coverage 
category would be required to provide a functional and operational 
computer with NMFS-supplied software installed to facilitate the 
electronic entry of observer data collected on board the vessel. At the 
time of Program implementation, AFA CVs would be required to provide 
communications equipment necessary to facilitate the point-to-point 
communication necessary to transmit observer data to NMFS on a daily 
basis. For the first three years after implementation, the PCTC Program 
would exempt non-AFA CVs from the requirement to facilitate at-sea 
transmission of observer data. If a non-AFA CV has the necessary 
communication equipment already installed on the vessel prior to the 
end of the 3-year exemption, the vessel would be required to allow the 
observer to use the equipment. After three years, all vessels would be 
required to comply with requirements for at-sea observer data 
transmission. Monitoring and enforcement provisions would be

[[Page 8597]]

implemented to track quota, harvest, PSC, and use caps. NMFS would 
report weekly vessel-level PSC information as authorized under 
Magnuson-Stevens Act Sec. 402(b)(2)(A).

II. PCTC Program Quota Share (QS)

    Under the PCTC Program, QS for Pacific cod would be assigned to 
eligible LLP licenses (with and without transferable AI endorsements) 
and newly created processor PCTC Program QS permits. The amount of QS 
allocated to individual LLP licenses or processors would be determined 
by historic participation relative to other LLP licenses or processors, 
as described below. QS holders would be required to join or associate 
with a cooperative, and the aggregate QS of cooperative members and 
associated processors would yield an exclusive harvest privilege for 
PCTC Program cooperatives, which NMFS would issue as CQ each year. Of 
the total annual CQ, 77.5 percent would be derived from QS issued to 
LLP licenses and 22.5 percent would be derived from QS issued to 
processors. CQ would represent a portion of the A and B season BSAI 
trawl CV sector Pacific cod DFA that is available only to the holders 
of CQ. This Program would establish criteria for harvesters and 
processors in the BSAI trawl CV sector Pacific cod fisheries to qualify 
for and receive QS, criteria for allocating QS in the initial year of 
implementation, and criteria for the transfer of QS.
    NMFS would assign PCTC Program QS to eligible LLP licenses based on 
qualifying catch history (legal landings) of targeted BSAI Pacific cod 
authorized by that LLP license during the qualifying years 2009 through 
2019, excluding the year with the lowest total harvest for each 
license. The qualifying period for LLP licenses with transferable AI 
endorsements also includes harvest by vessels that generated the 
transferable AI endorsement from January 20, 2004 through September 13, 
2009. The amount of QS assigned to an LLP license relative to the total 
QS assigned to all LLP licenses determines the percentage of the 
harvesters' allocation (77.5 percent of the A and B season DFA) that a 
harvester could designate to a cooperative.
    Allocations of QS to processors with an eligible FFP or FPP 
(subject to eligibility requirements under BSAI FMP Amendment 120 to 
limit C/Ps acting as mothership) is based on processing history in the 
Federal BSAI Pacific cod trawl CV fishery. QS would be assigned to 
eligible processors based on each processor's targeted Pacific cod 
processing history during the qualifying years 2009 through 2019, 
excluding the year with the least amount of processing history. The 
amount of QS assigned to a processor PCTC Program QS permit relative to 
the total QS assigned to all PCTC Program QS permits determines the 
percentage of the processors' allocation (22.5 percent of the A and B 
season DFA) that a processor could designate to a cooperative. NMFS 
would assign QS to holders of eligible LLP licenses if they submit a 
timely and complete Application for PCTC Program QS. A similar process 
would be used for the processor QS allocation. Processors with 
qualifying processing history would be assigned QS on a processor 
permit for each unit of processing history.

A. Eligibility To Receive PCTC QS

    This section defines and describes the requirements necessary to 
identify eligible LLP licenses and processors that would receive PCTC 
Program QS. ``Eligible PCTC Program LLP license'' means an LLP license 
assigned to a vessel that made qualifying catch history (legal 
landings) of targeted trawl CV BSAI Pacific cod during the PCTC Program 
qualifying years. ``Eligible PCTC Program processor'' means a 
processing facility with an active Federal processor permit that has 
historically received Pacific cod legal landings.
    ``Legal landings'' means the retained catch of Pacific cod caught 
by a CV using trawl gear in the BSAI during the directed fishing season 
for Pacific cod that was: (1) made in compliance with state and Federal 
regulations in effect at that time, (2) recorded on a State of Alaska 
fish ticket or shoreside logbook for shoreside deliveries or in 
observer data for mothership deliveries, and (3) was the predominately 
retained species on the fishing trip (i.e. Pacific cod was targeted). A 
legal landing must have been authorized by either (1) an LLP license 
participating in the A or B season of a Federal or parallel State water 
groundfish fishery during the qualifying years 2009 to 2019, or (2) an 
LLP license with a transferable AI endorsement that, prior to receiving 
that AI endorsement, participated in the AI parallel fishery from 
January 20, 2004 through September 13, 2009. Legal landings for the 
PCTC Program would not include landings in the CDQ fishery, in the 
State of Alaska GHL fishery, or made during the C season by vessels 
participating in a Federal or parallel State water fishery. For LLP 
licenses, NMFS would determine which LLP licenses were assigned to 
catcher vessels that harvested and offloaded BSAI Pacific cod that met 
all legal landings requirements. For processors, NMFS would determine 
which processors with active Federal permits received deliveries of 
legal landings of BSAI Pacific cod.

B. Rationale for Allocations

    The Council recommended and NMFS proposes establishing eligibility 
for the Program by considering the catch history associated with LLP 
licenses that authorized a vessel to make legal landings of targeted 
BSAI trawl CV Pacific cod during the qualifying years. The Council 
recommended against considering catch history occurring after December 
31, 2019 during the development of this Program to discourage 
speculative entry into the fishery. QS would be allocated to eligible 
LLP licenses based on legal landings of BSAI trawl CV Pacific cod from 
2009 through 2019. In addition, for LLP licenses with transferable AI 
endorsements, NMFS would consider catch history of targeted AI Pacific 
cod in the parallel fishery prior to receiving a transferable AI 
endorsement from January 20, 2004 through September 13, 2009. The 
Council recommended these qualifying years to ensure that both current 
and historical participation would be considered in allocating QS. This 
range of qualifying years is comparable with the Council's 
recommendations for awarding catch history in other rationalized 
fisheries (or fisheries managed under a LAPP).
    The Council considered alternative methods for allocating QS to 
participants in the BSAI trawl CV Pacific cod sector in the development 
of the Program. These alternatives are addressed in the Analysis 
developed to support this proposed action (see ADDRESSES). The Program 
would balance allocation among recent and historical participants. As 
with other QS programs (e.g., BSAI Crab Rationalization, and IFQ 
halibut and sablefish), the Program would allocate QS based on recent 
and historical harvesting and processing, as opposed to alternative 
allocative methods such as allocating equal shares or auctioning QS. In 
other North Pacific quota share programs, NMFS has allocated QS based 
on landings that occurred during a specific time period as a means of 
equitably distributing QS to participants based on their relative 
dependence on the fishery. This is the first LAPP in the North Pacific 
that allocates harvester QS to processors based on their processing 
history.
    One option for this Program considered the most recent five years 
of history (2014 through 2019) in the BSAI trawl CV Pacific cod 
fishery, but that

[[Page 8598]]

range of years undervalued long-term participation, which the Council 
believes is an important consideration for the PCTC Program. A second 
option the Council rejected included catch history years from 2004 
through 2019 because it would include several years before the 
implementation of the current BSAI Pacific cod sector allocations 
established by Amendment 85. These sector allocations, combined with a 
decline in the BSAI Pacific cod stock in recent years, have 
substantially changed fishery management and operations.
    A third option the Council considered included allocations on a 
blend of catch history and AFA sideboard limit history. This approach 
would have awarded catch history to LLP licenses assigned to vessels 
that did not make legal landings of BSAI trawl CV Pacific cod during 
the qualifying years but instead had catch history of BSAI Pacific cod 
from 1997 that contributed to a sideboard limit for all AFA trawl CVs 
in the BSAI. The Council recommended maintaining the long-standing 
policy that sideboard limits are not sector allocations. Instead, this 
proposed Program would award catch history to LLP licenses based on 
legal landings that were reported by the vessel assigned to the LLP 
license, consistent with the Council's past practice.
    In calculating QS to be issued to eligible LLP license holders and 
processors, the lowest year of catch history during the qualifying 
period would be dropped. Including a one-year drop provision would 
allow all participants to benefit from removing a non-representative 
participation year from the catch history used to issue their QS. The 
public testimony provided to the Council in support of this option 
noted that the catch history eligibility period is 11 years, and 
unforeseen events have occurred for many BSAI trawl CV Pacific cod 
fishery participants over that period that would reduce the amount of 
catch history awarded to their LLP license. The Council considered this 
to be a reasonable approach and consistent with Council and NMFS's 
practice in previous rationalization programs because it recognizes 
contingencies in fishing behavior over the qualifying years.
    Some legal landings during 2009 through 2019 were made by vessels 
with two or more associated LLP licenses, and in these cases the 
Council recommended assigning the qualifying catch history to one LLP 
license in one of two ways. First, the LLP license owners may come to 
an agreement regarding the division of qualifying catch history and 
submit this agreement to NMFS when they apply for QS. Or, if no 
agreement is provided by the LLP license holders, the owner of the 
vessel that made the qualifying catch would assign the history to one 
of the LLP licenses that authorized the catch. This approach is 
consistent with NMFS's approach for assigning legal landings in all 
previous North Pacific rationalization programs. In addition, the 
Council received public comment in support of this approach.
    The Council determined that an allocation of harvest QS to 
processors is necessary to provide stability to the sectors involved in 
the fishery after it transitions from a limited access fishery to a 
LAPP. The Analysis (see ADDRESSES) did not identify an optimal 
percentage of QS that should be allocated to processors to provide 
stability for harvesters and processors. Instead, the allocation amount 
recommended and proposed in this action--77.5 percent of QS allocated 
to harvesters and 22.5 percent to processors--is based on an agreement 
brought to the Council by members of the affected CV and processing 
sectors. Analysts noted that within the range of percentages considered 
for QS to be issued to processors, the leverage that each sector would 
have at any specific percentage would vary and the effects are likely 
to be most realized by firms that have less leverage outside the BSAI 
trawl CV Pacific cod fishery.
    Under the proposed Program, NMFS would allocate QS to eligible 
processors based on their processing history of legal landings of BSAI 
Pacific cod during the qualifying years. The QS issued to processors 
would be divided among eligible processors based on the percentage of 
legal landings of Pacific cod they processed during the A and B seasons 
during the qualifying years compared to the total legal landings of 
BSAI Pacific cod processed by all eligible processors. Allocating 
harvest shares to processors is intended to maintain a balance of 
market power within the industry under the LAPP.

C. Calculations of Initial Allocations

    The Council recommended, and NMFS proposes to set initial 
allocations through a specific process set forth in this section.
    The QS allocations for LLP license holders with no transferable AI 
endorsement would be calculated based on the sum of the 10 highest 
years of Pacific cod qualifying catch for the LLP license out of the 11 
qualifying years recommended by the Council. If an LLP license was only 
used in a single year or if the LLP license was used in ten or less 
years, a year with no qualifying catch would be dropped. If the LLP 
license was transferred within the qualifying years of 2009 to 2019, 
all legal landings during the period would still be assigned to that 
LLP. For LLP licenses with transferable AI endorsements, NMFS would 
also include the catch history of the vessel used to generate the 
endorsement from January 20, 2004 through September 13, 2009 (for these 
LLP licenses, NMFS would be looking at 16 years of catch history and 
dropping the lowest year). The current LLP license owner would be 
entitled to all QS derived from the LLP license and transferable AI 
endorsement catch history, unless compensation was required by a 
private agreement associated with the sale of the LLP license. The QS 
would not be divided among LLP licenses.
    NMFS proposes that for each LLP license holder, the qualifying year 
with the least amount of legal landings be dropped, and the total of 
the remaining years summed to determine the LLP license's QS units. 
This process would be done for all eligible LLP licenses, with and 
without transferable AI endorsements. The sum of all QS units issued 
would determine the harvesters total initial QS pool allocated to LLP 
licenses. All harvester QS units combined would represent 77.5 percent 
of the A and B season BSAI Pacific cod trawl CV DFA.
    An active processor would be eligible to receive initial QS 
allocations in the PCTC Program if they hold a Federal Fisheries Permit 
(FFP) or Federal Processing Permit (FPP) with processing history in the 
Federal BSAI Pacific cod trawl CV fishery between 2009 and 2019, which 
is the set of qualifying years recommended by the Council. An active 
processor is a processor firm that holds an FFP or FPP upon the 
effective date of the final rule implementing this Program.
    The QS for processors would be allocated based on the sum of legal 
landings delivered in the 10 highest years out of the 11 qualifying 
years recommended by the Council. If the FFP or FPP received deliveries 
of qualified catch in ten years or less, a year with no qualifying 
legal landings would be dropped. Processing companies that are no 
longer active--meaning that they do not have a current FFP or FPP upon 
the effective date of the final rule implementing this Program--would 
not be issued QS.
    For each processor, the sum of all years of deliveries of legal 
landings is calculated, the year with the smallest amount of delivered 
legal landings is dropped, and the total of the remaining years 
determines the FFP or FPP's QS

[[Page 8599]]

units. This process is done for all processors. The sum of all the 
processor QS units would determine the denominator of the initial QS 
pool for processors. All processor QS units combined would represent 
22.5 percent of the A and B season BSAI Pacific cod trawl CV DFA.

D. PCTC Program Official Record

    NMFS would establish a PCTC Program official record containing all 
necessary information concerning PCTC Program legal landings during the 
qualifying period, vessel and processor ownership, LLP license 
holdings, and any other information needed for assigning QS. The 
official record would include landings data (from the Catch Accounting 
System), documentation of LLP licenses, FFPs, and FPPs, and observer 
data. NMFS would presume the official record is correct and an 
applicant wishing to amend the official record would have the burden of 
establishing otherwise through an evidentiary and appeals process. That 
process is described in Section III.C of this preamble below.
    The official record would be used to establish the initial pool of 
QS that would be distributed to eligible harvesters and processors.
    Each metric ton of legal landing credited to a qualifying LLP 
license would result in one QS unit. This initial QS pool would be 
adjusted should the official record be amended through successful 
claims brought by an eligible participant or other corrections to the 
underlying data. See Parts E and F of this section below for more 
detail. As with other LAPPs (e.g., Central GOA Rockfish Program or the 
Amendment 80 Program), NMFS would establish ownership and use caps 
using this initial QS pool. Ownership and use caps are described 
further under Section VII of this preamble.

E. Harvester Allocations of QS in the PCTC Program

    Under this proposed rule, the Regional Administrator would allocate 
PCTC Program QS to an eligible harvester--i.e. LLP license holder--who 
submits a timely Application for PCTC Program QS that is approved by 
NMFS based on the amount of BSAI trawl Pacific cod legal landings 
assigned to an LLP license.
    NMFS proposes to assign a specific number of Pacific cod QS units 
to each LLP license with no transferable AI endorsement based on the 
legal landings of the LLP license using information from the PCTC 
Program official record as of December 31, 2022 according to the 
following procedures:
    (1) Determine the BSAI trawl CV Pacific cod legal landings 
authorized by an LLP license for each calendar year from 2009 through 
2019.
    (2) Drop from consideration the calendar year in which the LLP 
license had the least amount of legal landings. If an LLP license had 
one or more years with zero harvest, drop one of those years.
    (3) Sum the Pacific cod legal landings for the 10 years in which 
each LLP license had the most landings. This yields the QS units for 
each LLP license.
    NMFS proposes to assign a specific number of Pacific cod QS units 
to each LLP license with a transferable AI endorsement based on the 
legal landings of each vessel that was used to generate the 
transferable AI endorsement and subsequent legal landings authorized by 
the LLP license associated with the endorsement using information from 
the PCTC official record according to the following procedures:
    (1) Determine the BSAI trawl CV Pacific cod legal landings for each 
vessel used to generate the transferable AI endorsement from January 
20, 2004 through September 13, 2009 and the LLP license associated with 
that transferable AI endorsement from September 14, 2009 through the 
end of 2019.
    (2) Drop from consideration the calendar year which the vessel used 
to generate the transferable AI endorsement (January 20, 2004-September 
13, 2009) or the associated LLP license (2009-2019) that had the least 
amount of legal landings. If a vessel or LLP license had one or more 
years with zero harvest, drop one of those years.
    (3) Sum the Pacific cod legal landings for the 15 years in which 
the relevant LLP license had the highest amount of legal landings. This 
yields the QS units for LLP licenses with transferable AI endorsements.
    After the QS units for the LLP licenses with and without 
transferable AI endorsements are determined under part 3 of each 
scenario above, NMFS would sum all harvester QS units to calculate the 
harvesters' total QS pool. NMFS would then determine what portion of 
the 77.5 percent of the A and B season DFA allocated as harvester QS 
under the PCTC Program is represented by each LLP license's QS units. 
To do so, NMFS would divide each LLP license's total QS units by the 
sum ([Sigma]) of all QS units for all eligible LLP licenses based on 
the PCTC official record as presented in the following equation:
    LLP license's QS units/([Sigma] QS units for all LLP licenses) x 
100 = Percentage of the total harvester QS pool allocated to that 
eligible LLP license. The result (quotient) of this equation is the 
percentage of the total harvesters' portion of PCTC Program allocation 
(77.5 percent of the A and B season DFA) that a QS holder could assign 
to a cooperative each year.

F. Processor Allocations of QS in PCTC Program

    The Council recommended and NMFS proposes allocating harvest shares 
to processors to provide stability to all of the sectors involved in 
the fishery after it transitions from status quo conditions to the PCTC 
Program.
    Under the Program, processors with an eligible FPP or FFP that have 
history of processing in the Federal BSAI Pacific cod trawl CV fishery 
would be eligible to receive QS based on each processor's processing 
history (subject limitations on the number of C/Ps authorized to 
operate as motherships under BSAI FMP Amendment 120). Processors 
eligible to receive QS would be issued a new PCTC Program processor QS 
permit and could annually associate with a PCTC Program cooperative. 
Harvesters in the cooperative would then have access to the CQ derived 
from processor-held QS.
    If a processor holding QS does not associate with a cooperative, 
that processor's QS would be divided among cooperatives in the same 
proportion as the CQ assigned to individual cooperatives that year. If 
a processor associated with more than one cooperative during a year, 
the CQ derived from their processor permit would be divided among the 
cooperatives in the same proportion as the CQ derived from LLP licenses 
within each associated cooperative.
    Cooperatives would have some limitations on the manner in which 
they can use CQ derived from processor-held QS. To address vertically 
integrated companies where a processing company may also own LLP 
licenses or CVs, the Council intended processor held QS to be divided 
among cooperative CVs proportionately to the QS attached to LLP 
licenses onboard the harvesting vessel. In other words, a cooperative 
should not allow a CV or LLP license owned by that processor to harvest 
a greater proportion of the CQ resulting from processor-held QS than 
the LLP license would have brought into the cooperative absent any 
processor-held QS. The cooperative would monitor this provision and 
include reporting on harvest of CQ resulting from processor-held QS in 
the PCTC Program cooperative annual report.

[[Page 8600]]

    Processors that are no longer active (no longer hold an FPP or FFP 
upon the effective date of the final rule implementing this Program) 
would not be issued QS. The processing history associated with those 
processors would be deducted from the total amount of eligible 
processing history during the qualifying years when calculating the 
distribution of QS to processors.
    NMFS proposes to assign a specific number of Pacific cod QS units 
to each processor permit based on the qualifying landings delivered to 
the processor using information from the PCTC official record as of 
December 31, 2022 according to the following procedures:
    (1) Determine the BSAI trawl CV Pacific cod legal landings in the A 
and B seasons delivered to each eligible processor for each calendar 
year from 2009 through 2019.
    (2) Drop from consideration the calendar year in which the 
processor received the least amount of legal landings. If a processor 
had one or more years with zero processing of Pacific cod legal 
landings, drop one of those years.
    (3) Sum the Pacific cod legal landings of the highest 10 years for 
each eligible processor. This yields the QS units for each processor.
    (4) Divide the QS units for each eligible processor by the sum 
([Sigma]) of all QS units for all processors based on the PCTC official 
record as presented in the following equation:
    Processor's QS units/[Sigma] all processor QS units x 100 = 
Percentage of the total processor QS allocation for that processor. The 
result (quotient) of this equation is the percentage of the total 
processors' portion of PCTC Program allocation (22.5 percent of the A 
and B season DFA) that a QS holder could designate to a cooperative 
each year.

             Table 2--PCTC Program Initial QS Pool in Units
------------------------------------------------------------------------
                                            PCTC Program initial QS pool
                  Species                             in units
------------------------------------------------------------------------
Pacific cod (Holders of LLP Licenses with   [Sigma] highest 10 years of
 no transferable AI endorsement).            BSAI Pacific cod catch
                                             history in metric tons in
                                             the PCTC official record as
                                             of December 31, 2022 for
                                             LLP license holders.
Pacific cod (Holders of LLP licenses with   [Sigma] highest 15 years of
 transferable AI endorsements).              BSAI Pacific cod catch
                                             history in metric tons in
                                             the PCTC official record as
                                             of December 31, 2022 for
                                             holders of LLP licenses
                                             with transferable AI
                                             endorsements.
Pacific cod (All processors)..............  [Sigma] highest 10 years
                                             BSAI Pacific cod processing
                                             history in metric tons in
                                             the PCTC official record as
                                             of December 31, 2022 for
                                             that BSAI Pacific cod for
                                             eligible processors.
------------------------------------------------------------------------

G. PSC Limits in PCTC Program

    The Council's experience with rationalization programs has shown 
that, as the race for fish ends, fleets can make operational choices 
that promote reductions in PSC. Reducing PSC is an important benefit of 
the Program and reflects a substantial amount of public testimony 
highlighting the importance of minimizing bycatch to the extent 
practicable in this rationalization program consistent with the 
Council's purpose and need statement and National Standard 9.
    PCTC Program cooperatives would annually be apportioned halibut and 
crab PSC limits based on the percentage of total BSAI Pacific cod CQ 
allocated to their cooperative (derived from both harvester and 
processor allocations of QS). NMFS would monitor PSC use at the sector 
level and cooperatives would be responsible for managing PSC limits at 
the cooperative level. Cooperatives would be prohibited from fishing 
under the Program if a halibut PSC limit is reached for the cooperative 
or from fishing in a crab bycatch limitation zone if a crab PSC limit 
is reached in that relevant area. PSC limits may be transferred between 
cooperatives to cover any overages or to allow a cooperative to 
continue harvesting Pacific cod CQ.
Halibut PSC
    Annually, the Council recommends to NMFS an apportionment of the 
total halibut PSC allowances for the BSAI trawl limited access sector. 
The BSAI trawl limited access sector is composed of the trawl CV sector 
and the AFA C/P sector. The specific percentage of the total halibut 
PSC limit assigned to the trawl limited access sector may change 
annually based on the Council's recommendation. Each year after 
apportioning the halibut PSC limit to the trawl CV sector for the A and 
B season, NMFS will apply a fixed percentage reduction to that PSC 
limit. In the first year of the program, NMFS will apply a 12.5 percent 
reduction, and in the second year and each year thereafter, NMFS will 
apply a 25 percent reduction (see section 2.10.3.1).
    Because this halibut PSC reduction is limited to the PCTC Program, 
it would apply only to the halibut PSC apportionment for the A and B 
season Pacific cod trawl CV sector. The recommended reduction to 
halibut PSC limits under the Program would be calculated annually and 
published in the annual harvest specifications after the Council 
recommends and NMFS approves the BSAI trawl limited access sector's PSC 
limit apportionments to fishery categories.
    Under the Program and this proposed rule, NMFS would apportion 
halibut PSC limits assigned to the BSAI trawl limited access sector 
Pacific cod fishery between the trawl CV and AFA C/P sectors. 
Specifically, the halibut PSC limit would be divided between the trawl 
CV and AFA C/P sectors based on historical use during the qualifying 
years, with 98 percent apportioned to trawl CVs and 2 percent 
apportioned to AFA C/Ps. NMFS would further apportion the halibut PSC 
for the trawl CV sector between the PCTC Program (A and B seasons) and 
the trawl CV Pacific cod C season. The C season apportionments would be 
established before applying PSC limit reductions described above. Of 
the halibut PSC limit apportioned to the trawl CV sector, 95 percent 
would be available for the PCTC Program in the A and B seasons with 5 
percent reserved for the C season. Any amount of the PCTC Program PSC 
limit remaining after the B season would be reallocated to the trawl CV 
limited access fishery in the C season.
    Currently, 50 CFR 679.21(b)(2) and (e)(5) authorize NMFS, based on 
Council recommendations, to establish seasonal apportionments of 
halibut and crab PSC limits for the BSAI trawl limited access sector 
fishery categories to maximize the ability of the fleet to harvest the 
available groundfish TAC and to minimize PSC mortality to the extent 
practicable. The factors considered annually are (1) seasonal 
distribution of prohibited species, (2) seasonal distribution of target 
groundfish species relative to prohibited species distribution, (3) PSC 
needs on a

[[Page 8601]]

seasonal basis relevant to prohibited species biomass and expected 
catches of target groundfish species, (4) expected variations in PSC 
rates throughout the year, (5) expected changes in directed groundfish 
fishing seasons, (6) expected start of fishing effort, and (7) economic 
effects of establishing seasonal PSC apportionments on segments of the 
target groundfish industry. Based on these criteria, the Council 
recommends, and NMFS annually publishes the proposed seasonal PSC limit 
apportionments to maximize harvest among fisheries and seasons while 
minimizing PSC mortality.
    The halibut PSC limit for the BSAI trawl limited access sector is 
established at 745 mt (Sec.  679.21(b)(1)). The BSAI trawl limited 
access sector halibut PSC limit is further divided by fishery 
categories during the annual specifications process, with 391 mt (52.5 
percent) of the sector limit designated for use in the BSAI Pacific cod 
fishery in 2019. The halibut PSC limit for the BSAI trawl limited 
access sector is an annual limit that is currently not apportioned by 
season.
    The following example using 2019 halibut PSC limits illustrates how 
the PSC reduction under the PCTC Program would work once fully 
implemented. The total 2019 BSAI trawl limited access sector halibut 
PSC limit apportionment to the Pacific cod fishery category was 391 mt. 
Had the Program been in place, 98 percent of that total would have been 
apportioned to the trawl CV Pacific cod sector (383 mt) while the 
remaining 2 percent would have been apportioned to the AFA C/P sector 
(9 mt). The trawl CV halibut PSC limit portion (383 mt) would have been 
further apportioned between the rationalized A and B seasons at 95 
percent (364 mt) and the non-rationalized C season at 5 percent (19 
mt). Finally, the halibut PSC limit for the rationalized A and B 
seasons would have been reduced by 25 percent to 273 mt, resulting in a 
halibut PSC limit savings of 91 mt. Any amount of the PCTC Program 
halibut PSC limit remaining after the B season would have been rolled 
over to the C season trawl CV limited access fishery but future savings 
in halibut PSC that is achieved by not allocating 25 percent of the PSC 
limit apportioned to the trawl Pacific cod sector in the A and B season 
would not be used or reallocated for use in other fisheries.
Crab PSC
    The Council recommended, and NMFS proposes, a 35 percent reduction 
in crab PSC limits for PCTC Program trawl CVs during the A and B 
season. For the crab PSC limits, the 35 percent reduction in PSC limits 
for the PCTC Program would be effective immediately when the Program is 
implemented (no phase-in). The annual crab PSC limits available to the 
BSAI trawl limited access sector Pacific cod fishery category would be 
apportioned between the trawl CV sector and the AFA C/P sector based on 
the proportion of BSAI Pacific cod allocated to the two sectors: 90.6 
percent to BSAI trawl CVs and 9.4 percent to AFA C/Ps.
    Crab PSC limits include red king crab (Zone 1), C. opilio (COBLZ), 
and C. bairdi (Zone 1 and Zone 2), are specified annually based on 
abundance and spawning biomass and are established by regulation for 
the BSAI trawl limited access sector, which is divided between the 
trawl CV and the AFA C/P sectors (Sec.  679.21(e)(3)(iv)). Using the 
2019 crab PSC limits as a reference point combined with the recent 
decrease in abundance and biomass estimates, we can calculate that the 
proposed 35 percent reduction in crab PSC limits in 2022 would have 
resulted in an 80 percent reduction for red king crab (Zone 1), a 69 
percent reduction for C. opilio (COBLZ), and a 48 percent reduction for 
C. bairdi (Zone 1 and Zone 2).
    Crab PSC limits would be based on the proportion of BSAI Pacific 
cod allocated to the trawl CV sector (90.6 percent) and the AFA C/P 
sector (9.4 percent). Of the crab PSC limit apportioned to the trawl CV 
sector, 95 percent would be available for the PCTC Program (A and B 
seasons) and 5 percent would be reserved for the C season. As with 
halibut PSC, any amount of the PCTC Program PSC limit remaining after 
the B season would be reallocated to the C season trawl CV limited 
access fishery.
    The following example using 2019 crab PSC limits illustrates how 
the PSC reduction would work once fully implemented. The 2019 BSAI 
trawl limited access sector red king crab (zone 1) PSC limit 
apportionment to Pacific cod fishery category was 2,954 animals, which 
would result in 2,676 animals apportioned to the BSAI trawl CVs and 278 
animals apportioned to the AFA C/Ps. Had the Program been in place, the 
BSAI trawl CV crab PSC limit would have been further apportioned 
between the rationalized A and B seasons at 95 percent and the non-
rationalized C season at 5 percent. Thus, 2,542 animals would have been 
apportioned to the rationalized A and B seasons and 134 animals would 
have been apportioned to the C season. Finally, the crab PSC limit for 
the rationalized A and B seasons would have been reduced by 35 percent, 
resulting in a limit of 1,652 animals, which would have been a savings 
of 890 animals. Any amount of the PCTC Program crab PSC limit remaining 
after the B season would be rolled over to the C season trawl CV 
limited access fishery, but future reductions in crab PSC would not be 
allocated and therefore would not be available for use or reallocation 
for use in other fisheries.

III. Application Process

A. Application for PCTC QS

    A person would be required to submit an Application for PCTC 
Program QS in order to receive an initial allocation of PCTC QS. NMFS 
would require an application to ensure that QS is assigned to the 
appropriate person(s) and to provide a process for resolving claims of 
legal landings that are contrary to the official record. Once a person 
submits an Application for PCTC Program QS that is approved by NMFS, 
that person would not need to resubmit an application for QS in future 
years.
    A completed Application for PCTC Program QS must be received by 
NMFS no later than 1700 hours AKST 30 days after the effective date of 
the final rule or, if sent by U.S. mail, postmarked by that time. 
Objective written evidence of timely application will be considered 
proof of a timely application.
    NMFS will mail an application package to all potentially eligible 
LLP license holders, AI endorsement holders, and processors based on 
the address on record at the time the application period opens upon 
effectiveness of the final rule. This package would include a letter 
informing potentially eligible LLP license holders and processors 
whether NMFS has determined they are eligible to receive QS, and if so, 
the amount of qualifying catch history calculated by NMFS based on the 
official record. Applications will be available on the Alaska Region 
website and interested persons could also contact NMFS to request an 
application package. An application could be submitted electronically 
or by mail.
    Briefly, the Application for PCTC Program QS would need to contain 
the following elements:
     Identification and contact information for the applicant;
     LLP licenses held by the applicant;
     FFP or FPP held by the applicant;
     Any other information required on the application; and
     The applicant's signature and certification. If the 
application is completed by a third party on behalf of the potential QS 
recipient, authorization

[[Page 8602]]

for that person to act on behalf of the potential QS recipient.

B. Ninety Day Transfer Window for Non-Exempt AFA LLP holders

    For LLP licenses associated with AFA non-exempt vessels, within 90 
days of initial issuance of QS, the owner of the LLP license may 
transfer QS to another LLP license associated with an AFA non-exempt 
vessel. These QS transfers are subject to the QS ownership cap further 
described in section VII.B of this proposed rule. This provision allows 
LLP license holders that engaged in AFA sideboard harvesting agreements 
during the qualifying period to transfer resulting QS back to the 
originating LLP license.
    The transferor and the transferee must submit to NMFS a letter as 
evidence of their agreement to transfer the QS in this one-time 
opportunity. In the letter, they must explain how much QS would be 
transferred and to which LLP license or licenses.
    If only one party submits evidence of an agreement, the QS would 
remain with the LLP license to which it was initially assigned.

C. Application Review and Appeals

    Persons applying for QS will state in their application whether or 
not they agree with NMFS's calculation of catch and processing history 
from the official record. If they disagree, they can submit supporting 
documentation regarding their catch history along with their 
application for QS. If any applicant disagrees with NMFS's initial 
calculations and provides documentation to support claims of catch 
history that are inconsistent with the official record, NMFS would 
determine whether such documentation is sufficient to amend the 
official record. If not, NMFS would inform the applicant that the 
submitted documentation was insufficient and provide the applicant with 
a 30-day evidentiary period to further support their claims. After the 
close of the 30-day evidentiary period, NMFS would make its final 
decision about the official record and issue an initial administrative 
determinations (IAD) to the applicant. IADs would include all the 
information described below. Applicants who disagree with the IAD may 
appeal NMFS's decision through the NOAA National Appeals Office 
according to the procedures found at 50 CFR 679.43.
    NMFS's IAD would indicate the deficiencies and discrepancies in the 
application or revised application, including any deficiencies in the 
information or evidence submitted to support an applicant's claims 
challenging the official record. NMFS's IAD would indicate which claims 
could not be approved based on the available information or evidence 
and provide information on how an applicant could appeal an IAD. An 
applicant who appeals an IAD would not receive any QS based on 
contested landings data unless and until the appeal was resolved in the 
applicant's favor. Once NMFS has approved an application for PCTC 
Program QS in its entirety, NMFS would assign QS units to an 
applicant's LLP license or issue a processor a PCTC Program QS permit 
with a specified number of QS units.
    PCTC Program QS would be issued to the person identified in an 
approved application for QS. Once PCTC Program QS is issued, the QS 
units would remain attached to the associated LLP license or 
processor's PCTC Program QS permit in most circumstances and could not 
be severed or otherwise be transferred independently. There are several 
limited exceptions to non-severability: (1) QS attached to LLP licenses 
with transferable AI endorsements could be transferred along with the 
endorsement to another LLP license that meets the criteria for a 
transferable AI endorsement; (2) QS could be fully or partially 
transferred during the limited 90-day transfer provision described in 
section III.B of this proposed rule; (3) if a participant qualifies for 
a legacy exemption and receives an initial allocation of QS in excess 
of a program ownership cap, that participant's QS could be split during 
a transfer to prevent any recipient from exceeding a cap; and (4) QS 
could be separated from a processor QS permit in any transfer of 
processor-held QS if necessary to prevent any transferee from exceeding 
an ownership or use cap.

D. Transferring QS

1. Limits on Transferring QS
    As stated above, once QS is assigned to an LLP license, it 
generally could not be divided or transferred separately from that LLP 
license. For LLP licenses with transferable AI endorsements, after 
issuance QS generally could not be divided or separated from the 
transferable endorsement. However, there is an exception for both LLP 
licenses and processor-held QS permits that were initially issued QS 
greater than the ownership cap (i.e. for persons granted a legacy 
exemption from the ownership cap). For these QS holders, the amount of 
QS over the cap may be severed from the permit (and divided to multiple 
buyers) at the time of transfer because the QS caps do not allow a 
legacy exemption to extend beyond initial issuance. This provision 
would allow the transfer of an LLP license or processor-held QS permit 
subject to a legacy exemption without the transferee exceeding a QS 
ownership cap. In addition, for QS assigned to a processor holding a 
PCTC Program QS permit--even if the transferor does not hold QS in 
excess of any cap--QS could be divided or transferred separately from 
that processor permit if a sale would otherwise result in the 
transferee exceeding an ownership or use cap described in Section VII 
of this preamble. NMFS would not approve transfers of an LLP license 
with PCTC QS or a processor-held QS permit if the transfer would cause 
a person to exceed the 5 percent harvester QS ownership cap or the 20 
percent processor QS ownership cap.
    If a QS holder has a legacy exemption from the QS ownership cap, 
NMFS would not approve any QS permit transfers to that person unless 
and until that person's holdings of QS are reduced to an amount below 
the QS holdings cap.
2. Methods for Transferring QS
    Any transfer of QS would require approval by NMFS to properly track 
ownership and use cap accounting. For harvesters, QS could be 
transferred with an LLP license or a transferable AI endorsement to 
another person through the existing LLP transfer provisions described 
in regulations at 50 CFR 679.4(k)(7).
3. Transferring PCTC Program QS
    In order to transfer PCTC QS, a QS holder would submit to NMFS an 
application to transfer an LLP license or an application to transfer a 
processor QS permit. NMFS would require that the application include 
any additional information needed for the transfer of QS, including the 
sale price of QS. Applications to transfer an LLP license with PCTC QS, 
a transferable AI endorsement with QS, or a processor-held PCTC Program 
QS permit could be submitted electronically (see proposed regulatory 
text at Sec.  679.130 for detailed information). Transfer forms would 
be posted on the NMFS Alaska Region website.

B. CQ Transfers

    Under this Program, a cooperative could transfer all or part of its 
CQ to another cooperative for harvest subject to the limitations 
imposed by the ownership and use caps described in Section VII of this 
preamble and the proposed regulations. Transfer provisions would 
provide flexibility for

[[Page 8603]]

cooperatives to trade Pacific cod for harvest or PSC to support the 
PCTC program cooperative fishing. The ability to trade PSC allows 
cooperatives to account for unforeseen circumstances, but the incentive 
to avoid hitting a cooperative PSC limit remains because of the cost of 
acquiring PSC from another cooperative.
    To effectuate an inter-cooperative transfer, a designated 
representative of each cooperative would need to agree to and complete 
a CQ transfer application, which would be available on eFish or on the 
NMFS Alaska Region website. A transfer of CQ would not be effective 
until approved by NMFS. If the cooperative attempting to acquire CQ has 
reached any relevant use caps, NMFS would deny the transfer 
application.

C. Cooperative Reports

    Under the PCTC Program, cooperatives would be asked to provide 
voluntary annual reports to the Council. Consistent with other 
cooperative programs developed by the Council, these reports would 
include specific information on the structure, function, and operation 
of the cooperatives.
    Each year, the Council would receive reports outlining the 
cooperatives' performance at one of its regularly scheduled meetings. 
These reports would be used by the Council to ensure the program is 
functioning as intended and to solicit timely information on issues 
that may need to be addressed by the Council. The Council requested 
that each cooperative report include information on CQ leasing 
activities and any penalties issued, harvest of CQ resulting from 
processor-held QS, cooperative membership, cooperative management, and 
performance (including implementation of the AI set-aside when in 
effect).

IV. PCTC Program Cooperatives

    The PCTC Program is a cooperative-based program that requires 
participants to join a cooperative each year. Cooperatives would 
receive annual CQ derived from the QS held by the harvesters and 
processors that join the cooperative. Under the Program, cooperative 
members could coordinate their fishing operations, potentially reduce 
operational expenses, and increase the quality and revenue from the 
product, among other benefits.

A. Requirements for Forming a PCTC Cooperative

    Under the PCTC Program, forming a cooperative would require at 
least three LLP licenses with PCTC QS. Each cooperative would be 
required to associate with at least one licensed processor. There would 
be no limitation on the number of LLP licenses that may join a single 
cooperative, the number of processors a cooperative could associate 
with, nor on the amount of QS a single cooperative could control. There 
also would be no limitation on the number of cooperatives that may 
form, but each LLP license could be assigned to only one cooperative. A 
person may hold multiple LLP licenses, meaning that a single LLP 
license holder who holds three or more LLP licenses could form a 
cooperative in association with a processor.
    Annually, each cooperative would be required to submit an 
Application for PCTC Program Cooperative Quota, identifying the CVs 
that would be eligible to harvest a portion of that cooperative's CQ. 
NMFS would process an application for CQ and, if approved, issue CQ 
permits and apportioned amounts of annual crab and halibut PSC limits 
to the cooperative. CQ would constitute an exclusive harvest privilege 
for the A and B seasons. Under certain conditions, each cooperative 
would be required to set aside 12 percent of the A season CQ for 
delivery to an Aleutian Islands shoreplant as described further under 
the AI Community Protections section below. Cooperative members would 
determine their own harvest strategy, including which vessels could 
harvest the CQ.
    An LLP License holder may change cooperatives and processor 
associations may change annually without penalty. However, harvesters 
may not change cooperatives and cooperatives may not change their 
processor associations during the PCTC Program fishing season. If an 
LLP license is sold or transferred during the season, it would remain 
with the cooperative until the end of the season. Inter-cooperative 
formation would be allowed and an inter-cooperative agreement would be 
required to implement the AI set-aside and to allow for efficient 
trading of CQ or PSC limits between cooperatives.
    The following would be required to form a PCTC Program cooperative 
under the proposed Program:
     A complete Application for PCTC Program CQ must be 
submitted by November 1 of the year prior to fishing in the 
cooperative;
     A copy of the business license issued by the state in 
which the PCTC cooperative is registered as a business entity;
     A copy of the articles of incorporation or partnership 
agreement of the PCTC Program cooperative;
     A list of the names of all persons, to the individual 
level, holding an ownership interest in the LLP licenses that join the 
cooperative and the percentage ownership each person and individual 
holds in each LLP license;
     A list of trawl CVs eligible to harvest a portion of that 
cooperative's CQ; and
     A copy of the cooperative agreement signed by the members 
of the PCTC Program cooperative, which must include, at a minimum, the 
following terms: (1) QS holders affiliated with processors cannot 
participate in price setting negotiations except as permitted by 
antitrust law; (2) monitoring provisions, including sideboard 
protections in the GOA, sufficient to ensure compliance with the PCTC 
Program; and (3) a provision that specifies the obligations of PCTC QS 
holders who are members of the cooperative to ensure the full payment 
of cost recovery fees that may be due.
    Annual CQ would be issued to each cooperative by NMFS based on the 
aggregate QS of all cooperative members. NMFS would issue CQ by season 
and rely on the cooperatives to ensure the seasonal limits are not 
exceeded. Any unused A season CQ may be harvested during the B season. 
CQ would not be designated for harvest in a management area (i.e., BS 
or AI) but may be harvested from either area. However, NMFS will 
annually establish a separate AI DFA to support the calculation of the 
AI set-aside. For more information, see Section V of this preamble.

B. Application for Cooperative Quota (CQ)

    The PCTC Program would require cooperatives to submit an annual 
application for CQ by November 1, which is prior to the start of each 
fishing year. NMFS would use these applications to issue CQ permits, 
establish annual cooperative accounts for catch accounting purposes, 
and identify specific vessels that would be associated with each 
cooperative. As with other LAPPs, the information received in this 
application would be used to review ownership and control information 
for various QS holders to ensure that QS and CQ use caps are not 
exceeded (see Section IX of this preamble for additional detail on use 
caps).
    An application for CQ must be submitted to NMFS no later than 
November 1 of the year prior to fishing under the CQ permit to be 
considered timely. The cooperative's designated representative would be 
responsible for submitting the application for CQ on behalf of the 
cooperative members. If the designated representative for the

[[Page 8604]]

cooperative were to fail to submit a timely application for CQ, NMFS 
would not issue CQ to the members of the cooperative for that fishing 
year. This requirement would require all participants in the Program to 
organize as a cooperative prior to the November 1 deadline each year 
and submit a complete application to avoid delay of CQ issuance.
    The Applications for CQ would be available on the NMFS Alaska 
Region website and would be able to be submitted electronically through 
eFish or the NMFS Alaska Region website. The information that would be 
required in the application is detailed in the proposed regulatory text 
at Sec.  679.131. The following list summarizes the information that 
would be required:
     PCTC Program LLP license identification numbers;
     Processor-held PCTC Program processor QS permit number(s) 
and name of the processor that holds that each QS permit;
     PCTC Program QS ownership documentation;
     PCTC Program cooperative business address or identifier 
identification;
     Members of the PCTC Program cooperative and the associated 
processor;
     Trawl vessel identification, including the name(s) and 
USCG documentation number of vessel(s) eligible to harvest the CQ 
issued to the PCTC Program cooperative;
     Designated representative and cooperative members' 
signatures and certification; and
     Authorization for the designated representative to act on 
behalf of the cooperative to complete the application.

C. Issuing PCTC CQ

    NMFS would review the CQ applications for accurate information, use 
caps, and payment of any fees, including cost recovery. If approved, 
NMFS would issue a CQ permit to the cooperatives. Permits would not be 
issued until the annual harvest specifications are recommended by the 
Council for the upcoming year. Permits would generally be issued in 
early January for the upcoming year. The CQ permit would list the 
metric tons of Pacific cod by A and B season that the cooperative may 
harvest, the metric tons of apportioned halibut PSC, and the number of 
each species of crab PSC that the cooperative may use during the 
fishing year. The following is a brief description of the process NMFS 
would use for calculating the amount of CQ issued to a cooperative.
    CQ would be issued for A and B seasons separately, with total CQ 
issued to all cooperatives in each season equal to the DFA. The 
remaining TAC for the trawl CV sector would be the ICA for Pacific cod 
caught as bycatch in other fisheries, such as pollock. The DFA would be 
further subdivided into 77.5 percent for the harvester QS pool and 22.5 
percent for the processor QS pool. These two QS pools would be 
converted into CQ and issued as CQ to cooperatives.

D. Issuing PSC With CQ

    The proposed Program would authorize NMFS to issue halibut and crab 
PSC to each cooperative based on the proportion of Pacific cod QS, but 
NMFS would monitor PSC use at the sector level. PSC used by PCTC 
cooperative vessels would be deducted from the PCTC PSC limits when 
they are directed fishing for BSAI Pacific cod during the A and B 
seasons.

E. Processors in Cooperatives

    A person holding a PCTC Program processor QS permit would be 
required to associate with a cooperative to realize the economic 
benefits associated with their QS. This creates an economic incentive 
for the processors that hold QS to either associate with a cooperative 
on an annual basis or sell their permit to a processor that would 
associate with a cooperative. The CQ derived from processor-held QS 
that is not associated with a specific cooperative would be distributed 
among all the cooperatives that form in a given year in the same 
proportion as the CQ assigned to each cooperative. A cooperative may 
associate with a processor that does not hold PCTC QS.
    A cooperative cannot designate CQ derived from processor-held QS to 
a vessel owned by that processor in a greater amount than the LLP 
license associated with the vessel would have brought into the 
cooperative absent any processor-held QS. This provision is intended to 
ensure that processor-held CQ is not utilized to primarily benefit 
vessels in the cooperative that are owned by the processor. The 
cooperative would monitor this provision and include reporting on 
harvest of CQ derived from processor-held QS in the PCTC Program 
cooperative annual report.

F. CQ Transfers

    Under this Program, a cooperative could transfer all or part of its 
CQ to another cooperative for harvest subject to the limitations 
imposed by the ownership and use caps described in Section VII of this 
preamble and the proposed regulations. Transfer provisions would 
provide flexibility for cooperatives to trade Pacific cod for harvest 
or PSC to support the PCTC program cooperative fishing when it cannot 
be avoided. The ability to trade PSC allows cooperatives to account for 
unforeseen circumstances, but the incentive to avoid hitting a 
cooperative PSC limit remains because of the cost of acquiring PSC from 
another cooperative.
    To effectuate an inter-cooperative transfer, a designated 
representative of each cooperative would need to agree to and complete 
a CQ transfer application, which would be available on eFish or on the 
NMFS Alaska Region website. A transfer of CQ would not be effective 
until approved by NMFS. If the cooperative attempting to acquire CQ has 
reached any relevant use caps, NMFS would deny the transfer 
application.

G. Cooperative Reports

    Under the PCTC Program, cooperatives would be asked to provide 
voluntary annual reports to the Council. Consistent with other 
cooperative programs developed by the Council, these reports would 
include specific information on the structure, function, and operation 
of the cooperatives.
    Each year, the Council would receive reports outlining the 
cooperatives' performance at one of its regularly scheduled meetings. 
These reports would be used by the Council to ensure the program is 
functioning as intended and to solicit timely information on issues 
that may need to be addressed by the Council. The Council requested 
that each cooperative report include information on CQ leasing 
activities and any penalties issued, harvest of CQ resulting from 
processor-held QS, cooperative membership, cooperative management, and 
performance (including implementation of the AI set-aside when in 
effect).

V. AI Community Protections

    The Council and NMFS have long supported the development of a local 
CV fleet in remote AI communities, and a variety of programs have been 
implemented to encourage economic opportunities for local CVs and 
processing operations. Some of these programs include: the allocation 
of the AI pollock TAC to the Aleut Corporation, an Alaska Native tribal 
organization that represents specific community interests in Adak (70 
FR 9856; March 1, 2005); allocations of Western AI golden king crab to 
the Adak Community Development Corporation under the BSAI Crab 
Rationalization Program (70 FR 10174; March 2, 2005); and the 
establishment of a Community Quota Entity Program in the AI that

[[Page 8605]]

provides additional fishing opportunities for residents of fishery 
dependent communities in the AI and sustains participation in the 
halibut and sablefish IFQ fisheries (79 FR 8870; February, 14, 2014). 
Adak, the AI community with the most historical participation in the 
Pacific cod fishery, also acts as a port of embarkation and 
disembarkation for personnel on board C/Ps and CVs harvesting 
groundfish in the AI.
    The Council previously sought to ensure the continued participation 
of remote AI fishing communities in the Pacific cod fishery through 
BSAI Amendment 113, which was recommended by the Council and 
implemented by NMFS at the start of the 2017 fishing year (81 FR 84434, 
November 23, 2016). Amendment 113 set aside a portion of the BSAI 
Pacific cod TAC for harvest by catcher vessels delivering their catch 
to Aleutian Islands shoreplants. However, the U.S. District Court for 
the District of Columbia vacated the rule implementing Amendment 113, 
finding the record for that action failed to demonstrate consistency 
with the Magnuson-Stevens Act's National Standards (Groundfish Forum v. 
Ross, 375 F.Supp.3d 72 (D.D.C. 2019)). As a result of this court 
decision, the regulations implementing Amendment 113 are no longer in 
effect.
    Shortly after the vacatur of Amendment 113, the Council initiated 
action to rationalize the BSAI trawl CV Pacific cod fisheries and 
included options to meet the objective of supporting sustained 
participation by AI communities in the Pacific cod trawl CV fishery. 
Under the PCTC Program, cooperatives would be required to collectively 
set-aside 12 percent of the A season CQ for delivery to an Aleutian 
Island shoreplant (AI CQ set-aside) during years in which an AI 
community representative notifies NMFS of their intent to process 
Pacific cod.
    This provision is different from the set-aside implemented under 
Amendment 113 but would achieve a similar goal. NMFS proposes new 
regulations to implement the PCTC Program AI community measures, which 
will include some provisions that are similar or identical to the 
vacated regulations that implemented Amendment 113. For example, 
Amendment 113 defined an ``Aleutian Island shoreplant'' to mean a 
processing facility that is physically located on land west of 170[deg] 
W longitude within the State of Alaska (State), and this same 
definition will apply under the PCTC Program. Defining Aleutian Island 
shoreplant is necessary because the existing term ``shoreside 
processor'' in Sec.  679.2 can include processing vessels that are 
moored or otherwise fixed in a location (i.e., stationary floating 
processors), but not necessarily located on land. When Amendment 113 
was vacated, the associated regulations lost their legal effect, though 
they were not removed from the Code of Federal Regulations (CFR). Under 
this proposed rule, NMFS proposes to remove regulatory provisions at 
Sec.  679.20 that implemented the vacated Amendment 113 and add 
provisions applicable to the PCTC Program.
    Despite having a small local CV fleet, Adak has a substantial 
degree of historical engagement in the AI Pacific cod fishery. Adak is 
home to a large shoreplant, and, when operational, the Adak shoreplant 
primarily receives and processes Pacific cod harvested in the A season. 
In some years, the facility has not received any deliveries of 
groundfish, crab, or halibut due to a variety of operational and 
logistical challenges, as well as changes in fishery management. 
Section 2.8.6 of the Analysis provides additional detail on Adak 
shoreplant processing operations (see ADDRESSES).

A. Rationale for Establishing an AI CQ Set-Aside

    This proposed rule is intended to provide benefits to harvesters 
delivering to an Aleutian Island shoreplant, the shoreplants, and the 
communities where those shoreplants are located. This objective is 
consistent with long-standing policies recommended by the Council and 
regulations established by NMFS to provide harvesting and processing 
opportunities for communities in the AI. The Council determined and 
NMFS agrees that a harvest set-aside is needed for several reasons. 
First, the entire BSAI trawl CV Pacific cod apportionment could be 
harvested in the BS which would mean no cod would be delivered to a 
community in the AI, jeopardizing the ability of AI communities to 
continue participating in the fishery. Second, the Council acknowledged 
that the TAC for AI Pacific cod was significantly lower than predicted 
in the last few years, meaning that the small vessels operating in and 
around the AI could have reduced harvest opportunities in any given 
year. Third, the rationalization programs, and particularly the 
Amendment 80 Program, allowed an influx of at-sea processing capacity 
into the AI Pacific cod fishery (until at-sea processing was limited by 
Amendment 120 to the BSAI FMP), exacerbating the need for Council 
action to support shoreside delivery of Pacific cod to AI fishing 
communities. This proposed rule would strike a balance between 
supporting fishery-dependent communities and ensuring that the fishery 
sectors have a meaningful opportunity to fully harvest their 
allocations by including several measures to prevent AI Pacific cod 
from going unharvested. This proposed rule would provide benefits and 
stability to fishery-dependent fishing communities in the AI when their 
shoreplants are operating and is responsive to lingering effects caused 
by changes in management regimes such as rationalization programs.
    The Council recognized that neither of the existing Aleutian Island 
shoreplants--in Adak and Atka--have participated in the AI Pacific cod 
fishery in recent years. However, the Council also recognized that the 
measures and CQ set-aside in this proposed rule would minimize the risk 
that AI harvesters, processors, and communities would be excluded from 
the AI Pacific cod fishery and would maintain opportunities for them to 
participate.
    This proposed rule would revise regulations to provide additional 
incentives for harvesters to deliver AI Pacific cod to an Aleutian 
Island shoreplant. The AI Pacific cod TAC is not sufficient to allow 
all sectors to prosecute the AI Pacific cod fishery at their historical 
levels. Without the management measures included in this proposed rule, 
AI harvesters, shoreplants, and fishing communities could be preempted 
from the fishery by the offshore sector. The CQ set-aside would be 
especially beneficial to AI communities in low TAC years when harvest 
could otherwise fully occur in the BS, preventing any cod deliveries in 
the AI. The Council emphasized that this proposed rule would not affect 
any sector's BSAI Pacific cod allocation or the CDQ Pacific cod 
allocation in the AI. Non-CDQ sectors would continue to receive the 
allocations established under Amendment 85.

B. Establishing a Set-Aside for AI Processors

    The Council recommended, and NMFS proposes establishing a set-aside 
provision for AI processors that would require cooperatives to set-
aside an amount of annual CQ for delivery to an Aleutian Island 
shoreplant if the city of Adak or Atka files a notice of intent to 
process that year. The amount of the AI set-aside would be specified 
each year during the annual harvest specifications process. The amount 
of the AI set-aside would be equal to the lesser of either the AI 
Pacific cod non-CDQ DFA or 12 percent of the combined BSAI PCTC

[[Page 8606]]

Program A season CQ. The AI Pacific cod non-CDQ DFA is further 
described below in section V.D of this preamble.
    In administering the CQ set-aside, cooperatives would need to 
ensure that CVs under 60 feet in length assigned to an LLP license with 
a transferable AI endorsement have an opportunity to harvest at least 
10 percent of the set-aside. The AI CQ set-aside would be in effect 
during the A and B seasons unless the intent to process is withdrawn by 
the AI community. If the intent to process is withdrawn, any remaining 
portion of the AI CQ set-aside would be available for cooperatives to 
harvest and deliver to any processor. Each year, a representative of 
the cooperatives must submit an inter-cooperative agreement to NMFS 
that describes (1) how the CQ set-aside would be administered by the 
cooperatives, (2) how the cooperatives intend to harvest the set-aside, 
and (3) how cooperatives would ensure that CVs less than 60 feet in 
length assigned to an LLP license with a transferable AI trawl 
endorsement have the opportunity to harvest 10 percent of the AI CQ 
set-aside for delivery to an Aleutian Island shoreplant. All 
cooperatives would be required to provide the cooperative's plan for 
coordinating harvest and delivery of the set-aside to an Aleutian 
Island shoreplant in the annual cooperative application, regardless of 
whether a cooperative intends to harvest any amount of the CQ set-
aside.
    The purpose of the inter-cooperative agreement would be to ensure 
annual coordination between the PCTC Program cooperatives and 
shoreplants that are operating in the AI and to guarantee that the AI 
CQ set-aside is available to be harvested in the AI. This reduces the 
management burden on NMFS and relies on the cooperatives to organize 
the annual fishing activity.
    The 12 percent CQ set-aside is based on historical use by the 
Aleutian Island shoreplants. The Council did not recommend an 
allocation to the Aleutian Island shoreplants based, in part, on 
concerns about whether the plants would be in operation every year and 
their ability to lease CQ, which was not the intent of the Council in 
providing processing opportunities for the AI communities. A specific 
objective is to provide an opportunity for AI cod harvests to support a 
shoreplant that could be used in conjunction with other fishery 
landings and allocations to benefit AI communities. The Council 
determined that this AI CQ set-aside option best met their objective to 
support sustained AI community participation in the Pacific cod trawl 
CV fishery. The performance of this set-aside program will be evaluated 
in the periodic program reviews.
    The Council also noted that Aleutian Island shoreplants have a 
different history in the fishery than the non-Aleutian Island 
shoreplants, and, therefore, a different management structure is 
appropriate. Because there is currently no Aleutian Island shoreplant 
with an active FPP, no entity in the AI would be eligible for 
processor-issued QS. Unlike with the BS processors, QS allocations to 
AI processors would not work well based on the intermittent and 
impermanent operation of the Aleutian Island shoreplants. For this 
reason, the PCTC Program would provide benefits to Aleutian Island 
shoreplants through an AI CQ set-aside rather than by allocating QS to 
AI processors.

C. Intent To Process and Eligibility for AI Set-Aside

    This proposed rule would require annual notification of intent to 
process PCTC Program Pacific cod in the upcoming fishing year by a 
representative of the City of Adak or the City of Atka. A signed letter 
or memorandum would serve as the official notification of intent. This 
proposed rule would require that the official notification of intent be 
submitted to the NMFS Regional Administrator no later than October 15 
of the year prior to fishing. Email submission of an electronic copy of 
the official notification of intent by October 15 would provide NMFS 
inseason management with the timely information it needs to manage the 
upcoming fisheries and notify the cooperatives that the AI set-aside is 
in effect for the upcoming year.
    A city's notification of intent to process PCTC Program Pacific cod 
would be required to contain the following information: date, name of 
city, a statement of intent to process AI Pacific cod, statement of 
calendar year during which the city intends to process AI Pacific cod, 
and the contact information for the city representative where the 
shoreplant is intending to process AI Pacific cod. If no notice of 
intent to process is submitted, cooperatives would not be required to 
set aside CQ for Aleutian Island shoreplant delivery.
    On or before November 30, the Regional Administrator would notify 
the representative of the City of Adak or the City of Atka confirming 
receipt of their official notification of intent to process PCTC 
Program Pacific cod. Shortly after receipt of an official notification 
of intent to process PCTC Program Pacific cod, NMFS would announce 
through notice in the Federal Register whether the AI set-aside will be 
in effect for the upcoming fishing year.
    Even if an AI community is uncertain at the time the notice of 
intent is due as to whether an Aleutian Island shoreplant will be 
operational, there would be no penalty to the AI community or 
shoreplant for stating their intention to process but then later 
withdrawing that notice of intent. An AI city would be allowed to 
withdraw their notice of intent at any time after submitting it to 
NMFS.
    NMFS would monitor the implementation of the set-aside throughout 
the A and B seasons. NMFS would consider the number and frequency of 
deliveries to Aleutian Island shoreside processors as well as the 
season timing and remaining CQ to be harvested. As soon as practicable, 
if the Regional Administrator determines that Aleutian Island 
shoreplants authorized under the PCTC Program will not process the 
entire AI set-aside, the Regional Administrator could remove the 
delivery requirement for some or all of the projected unused AI CQ set-
aside. The unused portion of the AI CQ set-aside would be made 
available to PCTC cooperatives in proportion to the amount of CQ that 
each PCTC cooperative received in the initial allocation of CQ for that 
calendar year by inseason notification published in the Federal 
Register.
    If Adak and/or Atka withdraws its notice of intent to operate 
during the A or B season, any remaining portion of the AI CQ set-aside 
would be released to the cooperatives for delivery to any shoreside 
processor or an eligible C/P with a Pacific cod mothership endorsement.

D. AI DFA

    The Council recommended, and NMFS proposes that the amount of the 
CQ set-aside for delivery to an Aleutian Island shoreplant would be 
equal to the lesser of either the AI Pacific cod non-CDQ DFA or 12 
percent of the A season CQ and would be in effect during the A and B 
seasons. The Council and NMFS annually establish separate OFLs, ABCs, 
and TACs, for the AI and BS subareas; however, the non-CDQ sector 
allocations (including the PCTC Program allocations) remain BSAI-wide 
allocations. When this CQ AI set-aside is equal to the AI DFA, directed 
fishing for Pacific cod in the AI may be conducted only by PCTC Program 
vessels that deliver their catch of AI Pacific cod to Aleutian Island 
shoreplants. However, if the AI DFA is greater than the AI CQ set-aside 
(and thus the set-aside is equal to 12 percent

[[Page 8607]]

of the A season CQ), the difference between the AI DFA and the AI CQ 
set-aside may be available for directed fishing by all non-CDQ fishery 
sectors with sufficient A season allocations and may be processed by 
any eligible processor.
    This proposed rule would require that NMFS annually specify an ICA 
and a DFA derived from the Aleutian Islands non-CDQ TAC. Each year, 
during the annual harvest specifications process described at Sec.  
679.20(c), NMFS would specify an amount of AI Pacific cod that NMFS 
estimates will be taken as incidental catch when directed fishing for 
non-CDQ groundfish other than Pacific cod in the AI subarea. This 
amount would be the AI ICA and would be deducted from the AI non-CDQ 
TAC. The amount of the AI non-CDQ TAC remaining after subtraction of 
the AI ICA would be the AI DFA.
    NMFS would specify the AI ICA and DFA so that NMFS could clearly 
establish amount of AI CQ set-aside. It would also aid the public in 
knowing how much of the AI non-CDQ TAC is available for directed 
fishing prior to the start of fishing to aid in the planning of fishery 
operations.
    The amount of the AI ICA may vary from year to year, and in future 
years, NMFS would specify the AI ICA in the annual harvest 
specifications based on recent and anticipated incidental catch of AI 
Pacific cod in other AI non-CDQ directed groundfish fisheries.

VI. BSAI Pacific Cod CV C Season Fishery

A. Management of the Limited Access Fishery

    As stated above, the PCTC Program would allocate only A and B 
season trawl CV sector apportionments to cooperatives as CQ. The C 
season apportionment--which is 15 percent of the total annual 
allocation to the BSAI Pacific cod trawl CV sector--would remain a 
limited access fishery open to all trawl CVs with LLP license 
endorsements to harvest Pacific cod in the BS and/or AI with trawl 
gear. The C season limited access fishery would be managed as it is 
under status quo conditions, including management of incidental catches 
of Pacific cod in other directed fisheries. This means that, as under 
status quo conditions, any trawl CV with a Pacific cod endorsement and 
BS and/or AI area endorsements is eligible to fish in the C season 
until the TAC is reached.

B. ITAC and PSC Assigned to the Limited Access Fishery

    Although directed fishing for Pacific cod in the C season (June to 
November) is an important part of the annual fishing plan for some 
trawl CVs, most of the trawl CV C season catch is incidental to other 
directed fishing. In August, before directed fishing opens on September 
1 for the hook-and-line and pot sectors, NMFS estimates any BSAI trawl 
CV C season allocation would be available for reallocation to other 
sectors. In some years, it is clear that a portion of the trawl CV TAC 
will be available to reallocate, and NMFS may effectuate a reallocation 
in late September or October. In other years, it is less clear whether 
there will be any surplus TAC, and NMFS waits until after directed 
fishing for pollock and Pacific cod by the trawl CV sector closes. In 
that circumstance, reallocations would occur in November or December. 
When the BS and AI Pacific cod TACs are higher, trawl CV C season 
Pacific cod may go unused and can be reallocated to other sectors. In 
some years, other trawl CV fisheries may be done for the year by 
October and would not be considered for Pacific cod reallocations.
    To help ensure efficient allocation management, NMFS may rollover 
any unused portion of a seasonal apportionment from any non-CDQ fishery 
sector (except the jig sector) to that sector's next season during the 
current fishing year (Sec.  679.20(a)(7)(iv)(B) and (C)).
    Under the PCTC Program, the cooperatives would be granted harvest 
privileges in the A and B seasons of the BSAI Pacific cod fishery. 
Those harvest privileges would alter the reallocation structure from 
the trawl CV sector prior to the C season since roll-overs of unused 
PCTC CQ to other sectors would not occur until the close of the annual 
PCTC fishing year (the end of the B season). This proposed rule would 
establish a separate C season halibut and crab PSC apportionment of 
five percent before reducing the A and B season PSC limits as described 
above.

VII. Ownership and Use Caps

A. LAPPs and Use Caps

    Section 303A(c)(5)(D) of the Magnuson-Stevens Act requires the 
Council to ensure that Program participants do not acquire an excessive 
share of the total limited access privileges in the program by (1) 
Establishing a maximum share, expressed as a percentage of the total 
limited access privileges, that a limited access privilege holder is 
permitted to hold, acquire, or use; and (2) Establishing any other 
limitations or measures necessary to prevent an inequitable 
concentration of limited access privileges.
    The Council considered how the allocation of QS could result in 
consolidation in the harvesting and processing sectors, and whether 
consolidation could result in any participant acquiring an excessive 
share of the limited access privileges. To prevent excessive 
consolidation and any issues with excessive shares, the Program would 
implement ownership caps to limit the amount of QS a person could hold 
and use caps on the amount of CQ they could use. There are four types 
of ownership or use caps under the PCTC Program that would apply to 
harvesters and processors.
    Ownership and use caps are typically implemented to limit 
consolidation and prevent a person, vessel, or processing facility from 
harvesting, processing, or controlling an excessive amount of the LAPP 
shares. Here, the proposed ownership and use caps would limit 
consolidation of both harvesters and processors in the BSAI trawl CV 
sector, and this is described further in section 2.9.8 of the Analysis. 
In development of previous catch share programs, the Council tried to 
balance the goals of improving economic efficiency, maintaining 
employment opportunities for crew, and providing financially affordable 
access opportunities for new participants.
    Individual ownership and use caps for both CVs and processors would 
be calculated using the ``individual and collective rule.'' The 
individual and collective rule means a person is deemed to own or use 
QS or CQ in the same percentage that person owns or uses the relevant 
license, permit, or vessel. For example, persons that hold 100 percent 
of an eligible LLP license or processing permit would be assigned 100 
percent of the QS assigned to that LLP license towards their ownership 
cap. If they hold 50 percent of the license, they are credited with 
holding 50 percent of the QS assigned to that LLP license. The same 
logic applies to use caps: if a person owned 50 percent of a trawl CV, 
they would be credited with using 50 percent of the CQ harvested by 
that CV in calculating the use caps. If a person owns QS equal to the 
maximum shares cap, that person would not be allowed to acquire any 
additional QS. The proposed ownership and use caps of 5 percent for 
harvesters and 20 percent for processors are well below what the 
Council would consider an excessive share because such ownership 
amounts would preserve

[[Page 8608]]

price competition and would not result in any participant wielding 
improper market power. Because the proposed program caps fall well 
short of excessive shares, the Council recommended and NMFS proposes 
granting legacy exemptions to participants whose initial allocations 
based on historical participation would otherwise exceed the ownership 
and use caps. The legacy exemptions are intended to preserve stability 
in the fishery rather than force longtime participants to divest and 
reduce their reliance on the fishery. However, legacy exemptions are 
unique to persons receiving initial allocations and could not be 
transferred. All future purchasers of QS would be subject to the 
ownership and use caps described below.

B. QS Ownership Caps

1. Harvester QS Ownership Cap--5 Percent
    With the exception of persons qualifying for the proposed legacy 
exemption, no person would be permitted to individually or collectively 
own more than 5 percent of the aggregate PCTC Program QS units 
initially assigned to eligible LLP licenses. The number of PCTC Program 
QS units would be based on the PCTC Program official record. Section II 
of this preamble provides a detailed example of how the PCTC Program 
initial QS pool would be established. Persons over the cap at the time 
of QS issuance would be granted legacy exemptions. However, when QS is 
transferred, the person receiving the transfer would be prohibited from 
holding or using QS over the 5 percent cap. Processor-issued QS would 
not count toward this use cap. This QS ownership cap would limit the 
amount of PCTC QS assigned to an LLP license that could be held or 
controlled by a single entity.
2. Processor QS Ownership Cap--20 Percent
    With the exception of persons qualifying for the proposed legacy 
exemption, no person would be permitted to individually or collectively 
own more than 20 percent of the aggregate PCTC QS units initially 
assigned to PCTC Program QS permits held by eligible processors. This 
proposed rule defines processor-issued QS caps that limit the percent 
of that class of shares a person could hold or use. Processor-held QS 
ownership caps are necessarily higher than harvester-held QS caps 
because the total number of eligible processors is significantly less 
than the number of harvesters. This cap would be applied at the 
aggregate firm level (not the individual facility level). Persons over 
the cap at the time of QS issuance would be granted non-transferable 
legacy exemptions. The processor QS ownership cap would limit the 
amount of processor held PCTC QS that could be held or controlled by a 
single entity.

C. Vessel CQ Use Cap--5 Percent

    Most of the cooperative programs in the North Pacific include a 
vessel harvesting or use cap. A vessel use cap restricts the quota that 
can be consolidated and harvested on one vessel during the year.
    The Program would include a 5 percent vessel use cap on PCTC 
Program harvesting vessels. With the exception of persons qualifying 
under the proposed legacy exemption, no vessel would be permitted to 
harvest more than 5 percent of the annual PCTC CQ issued in the 
fishery. Vessels over the cap at the time of QS issuance would be 
granted legacy exemptions. The legacy exemption would apply to the 
vessel designated on an LLP license that yields more than 5 percent of 
the annual Pacific cod CQ at the time of initial allocation. This 
legacy exemption is not transferable if the LLP license is transferred 
to a new owner. The vessel use cap would limit the amount of PCTC CQ 
that could be harvested by a single vessel.

D. Processor CQ Use Cap--20 Percent

    A processor's CQ use cap would protect against excessive 
consolidation of processing activity by limiting a person (i.e. company 
or firm) from processing more than 20 percent of the annual PCTC CQ, 
with the exception of persons qualifying under the proposed legacy 
exemption. The processor CQ use cap would be calculated based on use of 
all CQ issued under the PCTC Program and not just QS initially issued 
to processors. This would ensure that a processing company would be 
limited to processing a specific percentage of the PCTC Program 
allocation. If the cap was set at the facility level, as was considered 
by the Council, there would have been no processing limit if a firm 
operated enough plants.
    Under this proposed rule, no person may process more than 20 
percent of the PCTC CQ using the individual and collective rule. A 
person over the cap at the time of QS issuance would be granted a non-
transferable legacy exemption. The processor CQ use cap would limit the 
amount of PCTC CQ that could be processed by a single person.

E. Transfer Limitations

1. QS Transfer Limitations
    Under the PCTC Program, LLP license holders that receive QS may 
transfer PCTC QS concurrently with the transfer of the LLP license or 
AI endorsement to which it is attached. Initially-issued QS is attached 
to LLP licenses and QS is non-severable from the LLP license in most 
cases. However, for LLP licenses with transferable AI endorsements, QS 
is instead non-severable from the AI endorsement and would move with 
the AI endorsement if sold to the holder of another LLP license 
eligible for the transferable AI endorsement. Transfer of an LLP 
license or AI endorsement results in the transfer of any PCTC Program 
eligibility and QS associated with the LLP license or transferable AI 
endorsement. NMFS would not approve transfers of LLP licenses or AI 
endorsements if the transfer would cause a person to exceed any 
ownership or use caps. If an LLP license holder qualifies for a legacy 
exemption from the QS ownership or use caps, NMFS would not approve any 
transfers of QS to that person unless and until that person's holdings 
of aggregate PCTC QS are reduced to an amount below the cap.
    To transfer an LLP license or an AI endorsement with PCTC Program 
QS, the LLP license holder must fill out an application for the 
transfer of an LLP groundfish or crab license, or for the transfer of 
an AI endorsement. In the application, the transferor must specify the 
amount of QS to be transferred (generally all QS attached to the 
license) the transferee, and the price for the QS transfer. As stated 
above, NMFS will consider any ownership or use cap implications in 
reviewing transfer applications. In addition, the QS price will be used 
in aggregate during program reviews.
    For processor-held QS, the QS also is non-severable from the permit 
unless the transfer would cause a transferee to exceed any holding or 
use caps. If a processor qualifies for a legacy exemption from the QS 
holding or use caps, NMFS would not approve any PCTC Program QS permit 
transfers to that person unless and until that person's holdings of 
aggregate PCTC QS are reduced to an amount below the QS use cap. A PCTC 
QS permit issued with a legacy exemption with an amount of PCTC QS 
above the QS ownership cap may be transferred, and any QS above the 
ownership cap would be severed from the PCTC QS permit at the time of 
transfer. Any PCTC QS severed from a PCTC QS permit at the time of 
transfer may be transferred to another eligible processor permit or 
used to create a new

[[Page 8609]]

PCTC QS permit to be issued to an eligible shoreside processor that 
holds an FPP. If a processor allows their FPP to expire, they would no 
longer be eligible to use their QS, but they could still transfer their 
QS permit.
    To transfer QS held by a processor, the processor must fill out an 
application to transfer QS. In the application, the transferee must 
specify the amount of QS to be transferred (generally all QS on the 
permit), which processors are receiving it, and the price for the QS 
transfer. NMFS will consider whether a transfer implicates any 
ownership or use caps in reviewing applications. In addition, the QS 
price will be used in aggregate during program reviews.
2. CQ Transfer Limitations
    In addition to permanent transfers of QS, CQ may also be 
transferred during the fishing season. Annual CQ and associated PSC are 
transferable between cooperatives through eFish, which automatically 
reviews transfers and approves them if they remain below specified use 
caps. Transfers of CQ would be for a single year's annual allocation. 
The underlying QS remains with the LLP license.
    This proposed rule would allow post-delivery transfers of CQ, but 
they must be completed prior to August 1, after the close of the B 
season. The intent of this provision is to improve cooperative 
flexibility, reduce potential violations from overages, reduce 
enforcement costs, and allow more complete harvests of each 
cooperative's allocation. At the end of the fishing season, remaining 
CQ may be consolidated into fewer cooperatives (and for harvest by 
fewer vessels) due to the requirement that a vessel may not begin a 
fishing trip without unharvested CQ. Allocations will likely be 
consolidated in one or two cooperatives with harvesters in those 
cooperatives making ``sweep up'' trips to complete the season's 
harvests. Although consolidation of allocations in one or two 
cooperatives may help avoid overages, it is anticipated that 
unintentional small overages could still occur.

Additional PCTC Program Provisions

A. Sideboard Limits in the PCTC Program

    Sideboard limits are restrictions placed on holders of quota share 
in rationalized fisheries that prevent them from taking advantage of 
the benefits of consolidation to expand their operations into other 
fisheries. PCTC Program sideboard limits would be intended to prevent 
holders of QS from expanding their fishing effort in GOA fisheries. 
Sideboard limits would allow cooperative members to catch up to the 
historical percentage of species they harvested in non-rationalized GOA 
groundfish fisheries. Sideboard limits are not an allocation. Rather, 
the sideboard is a limit on the catch of species that are not allocated 
as QS. The PCTC Program is designed to provide certain economic 
advantages to participants, which could be used to increase their 
participation in other fisheries and adversely affect GOA fishery 
participants by increasing competition in limited access fisheries. 
PCTC Program participants would not be guaranteed any sideboard limit 
as an amount of catch but instead could participate in the specified 
directed fishery until the PCTC program CVs in the aggregate hit the 
relevant species sideboard limit or TAC is closed to directed fishing, 
whichever happens first. To limit the participation of PCTC Program QS 
holders in other fisheries, the Program would add sideboard limits for 
GOA non-exempt AFA CVs and AFA LLP licenses and restrict vessels that 
are exempt from GOA sideboard limits from leasing CQ within the 
cooperative.
    The PCTC Program would modify existing GOA sideboard limits and 
associated GOA halibut PSC limits for non-exempt AFA vessels and LLP 
license holders, close directed fishing where sideboard limits are too 
small to support a directed fishery, and require that PCTC Program 
cooperatives monitor and report on leasing activity for vessels that 
are not subject to GOA sideboards. Most vessels that are exempt from 
the GOA sideboard limits would be prohibited from leasing their CQ 
under the program as a condition of benefitting from that exemption, 
with one exception: AFA GOA-exempt CVs, non-AFA CVs, and CVs assigned 
to under 60' LLP licenses with transferable AI endorsements with less 
than 300 mt of average annual qualifying catch history would be 
permitted to lease their CQ.
Existing GOA Sideboard Limits for Non-Exempt AFA CVs and LLP Licenses
    In the GOA, AFA CVs are divided into two categories: vessels 
subject to sideboard limits and vessels exempt from sideboard limits. 
The limits are currently calculated based on the catch histories of the 
non-exempt AFA CVs. Specifically, the sideboard ratio is aggregated 
retained catch for each groundfish species or species group from 1995 
through 1997 period relative to the sum of the TACs for the species or 
species group. Through an inter-cooperative agreement, AFA cooperatives 
currently divide the sideboard limits among the cooperatives and set 
penalties for exceeding the limits.
    AFA CVs that had a historical dependence on GOA fisheries and 
limited history in the BSAI pollock fishery benefit from an exemption 
to the GOA sideboard limits. The Council recommended an exemption to 
GOA sideboard limits for AFA vessels to be managed by the cooperatives 
with the understanding that no GOA sideboard-exempt vessel would lease 
its BS pollock in a year that it exceeds its GOA average harvest level 
from 1995 through 1997. This exception is implemented through the AFA 
CV Inter-Cooperative Agreement which binds vessels to this limitation.
    The AFA fleet includes two classes of sideboard-exempt CVs: (1) 
those exempt from sideboard limits in the BSAI Pacific cod fishery, and 
(2) those exempt from sideboard limits in the GOA groundfish fisheries.
    NMFS manages the AFA sideboard limits. The agency makes an initial 
determination at the beginning of the fishing year regarding the 
fisheries in which AFA vessels are likely to participate, based on 
historical participation (sideboard ratios), TACs, PSC limits, and 
other apportionments and regulations. The sideboard limit to TAC ratio 
remains the same year-to-year but is applied to the current year's 
initial total allowable catch (ITAC) to determine the yearly sideboard 
limit (see Table 2-121 of the Analysis).
    To streamline and simplify NMFS's management of AFA groundfish 
sideboard limits, regulations currently prohibit directed fishing for 
numerous BSAI and GOA species with historically small sideboards (84 FR 
2723, February 8, 2019); (50 CFR 679.20(d)(1)(iv)(D) and 50 CFR 
680.22(e)(1)(i) and (iii) and Tables 54, 55, and 56 to 50 CFR 679). See 
Section 2.9.4 of the Analysis for the 2021 non-exempt AFA CV groundfish 
sideboard limits in the GOA and for the non-exempt AFA CVs halibut PSC 
limits in the GOA (see ADDRESSES). Section 2.9.4 provides a list of the 
GOA groundfish species that are closed to directed fishing by AFA CVs. 
However, AFA CVs qualified for the CGOA Rockfish Program with Rockfish 
Program QS would not be restricted by AFA sideboard limits for primary 
and secondary Rockfish Program species while participating in the 
Rockfish Program.
    The current GOA halibut PSC limit for non-exempt AFA CVs is 
calculated based on the retained groundfish catch by AFA sideboarded 
CVs in the shallow-water and deep-water complex

[[Page 8610]]

from 1995 through 1997 relative to total retained catch in the shallow-
water and deep-water complex by all vessels. Under the GOA halibut PSC 
limits, fisheries in the applicable complex are closed for the 
remainder of a season once NMFS determines that the PSC limit will be 
reached. Any unused GOA halibut PSC in one season is added to the next 
season. Conversely, if a seasonal apportionment of a trawl halibut PSC 
limit is exceeded, the overage is deducted from the apportionment for 
the next season during the current fishing year.
Changes to Existing GOA Sideboard Limits
    Under the PCTC program, all GOA non-exempt AFA CVs and associated 
AFA LLP licenses would be sideboarded in aggregate for all GOA 
groundfish fishing activity and for GOA halibut PSC, except for vessels 
when participating in the CGOA Rockfish Program, based on their GOA 
catch history during the qualifying period. The existing sideboards are 
applied to non-exempt AFA vessels as defined at Sec.  679.64(b)(2). The 
PCTC Program would modify the calculation of the existing sideboard 
limits for these non-exempt AFA CVs, based on the GOA catch history. 
LLP licenses associated with non-exempt AFA CVs upon implementation of 
the PCTC Program would also be subject to the revised sideboard limits 
regardless of which vessel is named on the LLP.
    Sideboards are currently calculated for non-exempt AFA CVs based on 
the ratio of catch to the TAC during the years 1995-1997. The PCTC 
Program modifies the calculation of the sideboard ratios for non-exempt 
AFA CVs that would be used in the annual GOA harvest specifications, 
looking at the ratio of catch to the TAC in the qualifying years of 
2009-2019 (as shown in Table 3).
[GRAPHIC] [TIFF OMITTED] TP09FE23.000

    In addition, the ratio used to apportion GOA halibut PSC limits 
would be modified and the five seasonal apportionments based on that 
sideboard ratio would be reduced to a single aggregate amount. 
Providing an aggregate halibut PSC limit would provide greater 
flexibility for the AFA vessels and LLPs to assign halibut PSC limits 
to those GOA groundfish sideboard fisheries that have the greatest 
value. Table 4 shows the new aggregate GOA halibut PSC limit ratio 
based on the catch history during the qualifying period 2009-2019 that 
would be used instead of the information currently in the GOA harvest 
specifications table after the PCTC Program is implemented.

  Table 4--New GOA Halibut PSC Limit Ratio Aggregated at the Season and
  Complex Level for All AFA Non-Exempt CVs and Associated LLP Licenses
                       Under the Qualifying Period
------------------------------------------------------------------------
                                                            Qualifying
                 GOA halibut PSC limit                    period  (2009-
                                                              2019)
------------------------------------------------------------------------
PSC Limit Ratio........................................            .072
------------------------------------------------------------------------

    Additionally, the Council recommended and NMFS proposes to

[[Page 8611]]

close directed fishing to all GOA non-exempt AFA CVs and LLP licenses 
for the following species categories: Southeast Outside district of the 
Eastern GOA pollock, Western GOA shallow-water flatfish, Central and 
Eastern GOA deep-water flatfish, and Eastern GOA Pacific ocean perch. 
NMFS will no longer publish AFA Program sideboard limits for these 
specific species or species groups in the Federal Register as part of 
the annual groundfish harvest specifications but instead will specify 
in regulation that directed fishing for these species is closed to non-
exempt AFA CVs.
    AFA GOA-exempt CVs, non-AFA CVs, and CVs assigned to under 60 ft 
LOA LLP licenses with transferable AI endorsements that receive PCTC 
Program QS would not be permitted to lease the CQ generated by their 
LLP license as a condition of benefiting from a GOA sideboard 
exemption. If the GOA-exempt vessel assigned to the LLP license does 
not fish in any GOA fishery, except the CGOA Rockfish Program, during 
the calendar year, the BSAI Pacific cod CQ generated by the LLP license 
can be leased that calendar year. Cooperatives would be required to 
monitor CQ leasing activity by AFA GOA-exempt CVs, and non-AFA CVs, and 
CVs assigned to under 60 ft LOA LLP licenses with transferable AI 
endorsements and implement a penalty structure for violations. 
Cooperatives would report leasing activities and penalties issued in 
the voluntary cooperative annual report and in their annual cooperative 
application. AFA GOA-exempt CVs, non-AFA CVs, and CVs assigned to under 
60 ft LOA LLP licenses with transferable AI endorsements with less than 
300 mt of average annual qualifying BSAI Pacific cod history may lease 
their BSAI Pacific cod CQ and still benefit from the GOA sideboard 
exemption.
Changes to Existing BSAI Sideboard Limits for AFA CVs
    The BSAI Pacific cod and halibut PSC sideboard limits for AFA trawl 
CVs specified at 679.64(b)(4)(i) and in Table 40 to part 679 would be 
removed upon implementation of this Program. The BSAI Pacific cod 
sideboard limit would no longer be necessary because BSAI Pacific cod 
catch in the A and B seasons would be fully allocated under the PCTC 
Program. NMFS proposes removing the halibut PSC sideboard limits for 
AFA trawl CVs because the PCTC Program would establish lower PSC limits 
for PCTC Program participants. The BSAI crab PSC sideboard limit for 
AFA trawl CVs specified at Sec.  679.64(b)(4)(i) and Table 41 to part 
679 would remain unchanged by this proposed rule. Table 41 also 
establishes crab PSC sideboard limits for the AFA CV and AFA C/Ps, and 
the PCTC Program would not change these overall limits.

B. At-Sea Processing Sideboard Limit

    The Council recommended and NMFS proposes a sideboard limit on the 
amount of CQ that could be delivered by trawl CVs to a C/P designated 
on a groundfish LLP license with a BSAI Pacific cod trawl mothership 
endorsement. This sideboard limit would be assigned to the LLP license 
with a BSAI Pacific cod trawl mothership endorsement that authorizes 
the C/P to act as a mothership in the BSAI Pacific cod fishery. The 
Council recommended that each eligible C/P acting as a mothership could 
process up to the higher of (1) 125 percent of the eligible C/P's 
processing history during the qualifying years (with no drop year) or 
(2) the history from LLP licenses that are owned (in excess of 75 
percent) directly or indirectly by the owner of a C/P LLP license 
eligible for the offshore sector of the target non-CDQ BSAI Pacific cod 
trawl CV fishery (as of December 31, 2019) and not to exceed 125 
percent of the eligible CP's processing history. This at-sea processing 
sideboard limit would be permanently attached to the associated LLP 
license and would apply to the processing activity of any associated 
vessel.
    The Council recommended and NMFS proposes to establish an at-sea 
processing sideboard limit greater than the historical average to 
provide some opportunity for growth relative to the C/Ps historical 
annual average, though this limit may allow less offshore processing 
than occurred during some of the qualifying years. The 125 percent 
limitation was selected as a means to balance the needs of CVs that 
want to (or in some cases must) deliver offshore, the historical C/P 
platforms, shoreside processors, and the communities dependent on 
shoreside landings. The option selected allows two eligible C/Ps acting 
as a mothership to process up to 125 percent of their individual 
average processing history over the qualifying period but does not 
allow the firms to drop a year when calculating the limit. Due to 
confidentiality constraints, NMFS cannot publicly release the data used 
to calculate the limits, or the annual limits, that will apply to each 
of the two qualifying LLP licenses authorizing a C/P to operate as a 
mothership in this fishery. Because the amount is a limit and not an 
allocation, the PCTC Program does not require that this amount be 
delivered to C/Ps, but it provides an upper bound on how much may be 
delivered.
    This is consistent with the Council's intent under BSAI FMP 
Amendment 120 (84 FR 70064, December 20, 2019), where it restricted the 
number of C/Ps that are eligible to operate as a mothership receiving 
and processing Pacific cod from CVs in the BSAI non-CDQ Pacific cod 
directed fishery using trawl gear. Under Amendment 120, the Council and 
NMFS issued a BSAI Pacific cod trawl mothership endorsement to two LLP 
licenses but did not include a limit on the amount of BSAI Pacific cod 
that could be processed because it was not thought that any one 
processor could increase their capacity significantly under the LLP 
management system. However, under a rationalized, slower paced, 
cooperative fishing scenario that is proposed under this Program, the 
Council and NMFS determined it would be possible for continued 
mothership processing growth beyond historical patterns, so the Council 
recommended that a processing limit be established for each LLP listed 
in Table 57 to part 679. For more information on processing limits for 
the mothership sector, please see section 2.9.5 of the Analysis (see 
ADDRESSES).
    NMFS would calculate the at-sea processing sideboard limit, 
expressed as a percentage of the aggregate PCTC annual CQ that would 
apply to each LLP license with a BSAI Pacific cod trawl mothership 
endorsement and notify the LLP holder upon issuance of initial 
allocations. Each year upon issuance of CQ, this processing sideboard 
limit would be calculated for each applicable LLP. This proposed rule 
would not change the regulations pertaining to the transfer of LLP 
licenses as specified at Sec.  679.4(k)(7) nor the process to change 
the designated vessel on an LLP as specified at Sec.  679.4(k)(7)(vii). 
Each LLP subject to this at-sea processing sideboard limit would be 
prohibited from exceeding the processing limit as specified in proposed 
regulations below.
    Due to confidentiality requirements, the amount of the processing 
limit would not be made public and the LLP holder would be responsible 
for coordinating with any PCTC Program cooperative to ensure the 
applicable processing limit is not exceeded.
    To facilitate accurate accounting of PCTC catch delivered to a 
mothership and assign the catch delivered to a mothership in unsorted 
codends to the correct management program, NMFS proposes adding a new 
paragraph to the maximum retainable amount (MRA)

[[Page 8612]]

regulations at Sec.  679.20. This change will allow NMFS to assign each 
codend or ``haul'' delivered to a mothership to the appropriate fishery 
management program based on the retained catch composition of the haul. 
Any unsorted codend delivered to a mothership during the applicable 
PCTC season that is in the Pacific cod target fishery would be 
considered PCTC CQ and resulting PSC use will be deducted from the 
appropriate cooperative CQ and PSC limits. For any haul that is not in 
the Pacific cod target, the catch of Pacific cod would be deducted from 
the appropriate seasonal ICA and resulting PSC fishery category as 
established in the annual harvest specification process.

C. Cost Recovery

    The PCTC Program would be a LAPP established under the provisions 
of Section 303A of the Magnuson-Stevens Act. The Magnuson-Stevens Act 
requires that NMFS collect fees from limited access privilege holders 
to cover the actual costs of management, data collection and analysis, 
and enforcement activities associated with LAPPs. Cost recovery fees 
may not exceed three percent of the ex-vessel value of the fish 
harvested under the LAPP. NMFS would assess a fee on the ex-vessel 
value of PCTC Program Pacific cod harvested by cooperatives in the 
BSAI. Halibut and crab PSC would not be subject to a cost recovery fee 
because PSC cannot be retained for sale and, therefore, does not have 
an ex-vessel value.
    Collecting fees for the PCTC Program would require determining CQ 
ex-vessel value, assessing management costs, billing the appropriate 
fee to each cooperative, and ensuring that cooperatives comply with the 
fee collection requirements.
    NMFS would rely on the existing BSAI Pacific cod Ex-vessel Volume 
and Value Report to provide information on the ex-vessel value of 
Pacific cod for the PCTC Program. Pacific Cod Ex-Vessel Volume and 
Value reports are a component of existing groundfish cost recovery 
programs, such as the Amendment 80 Program. A shoreside processor 
designated on an FPP, or a mothership designated on an FFP, that 
processes landings of either CDQ Pacific cod or BSAI Pacific cod 
harvested by a vessel using trawl gear must submit annually to NMFS a 
complete Pacific Cod Ex-vessel Volume and Value Report, as described at 
paragraph Sec.  679.5(u)(1), for each reporting period for which the 
shoreside processor or mothership receives this Pacific cod. Each 
shoreside processor that would receive Pacific cod harvested under a 
PCTC CQ permit is already required to submit this report to NMFS no 
later than November 10 of each year pursuant to Sec.  679.5(u)(1)(iii). 
This report would allow NMFS to collect price data from the PCTC 
Program season which extends from January through June of each year and 
generate a standard ex-vessel price for Pacific cod and determine the 
average price paid per pound for all shoreside processors receiving CQ. 
NMFS publishes the applicable Pacific cod standard ex-vessel prices and 
fee percentage in the Federal Register following the end of the B 
season fishery in the year the landings were made, which would provide 
cooperatives with information necessary to assess their fee liability.
    NMFS would publish the Pacific cod fee percentage in the Federal 
Register that would determine the total fee, up to three percent of the 
total ex-vessel value of the fishery, required from all cooperatives 
based on landings of CQ made in the previous year. The fee percentage 
is the total percentage of ex-vessel value due for each pound of CQ 
made by a cooperative during the previous year. The amount due to NMFS 
is based on the standard ex-vessel value of the CQ debited from all 
PCTC Program CQ accounts relative to the actual costs directly related 
to the management, enforcement and data collection of the PCTC Program.
    NMFS would determine the fee percentage that applies to landings 
made in the current calendar year by dividing the total value of 
Pacific cod for all cooperatives made during the current year by the 
total actual costs during the previous fiscal year. NMFS would capture 
the actual cost of managing the fishery through an established 
accounting system that allows staff to track labor, travel, and 
procurement. Once the actual costs for the previous fiscal year are 
identified, that amount is recovered from all CQ holders in the 
fishery. If a three-percent fee would recover revenues in excess of 
those needed, the percentage will be set at less than three percent. 
The fee percentage could not be set at an amount higher than three 
percent of ex-vessel value even if the actual costs for the previous 
year exceeded three percent of the standard ex-vessel value for the 
PCTC Program CQ landings.
    NMFS would inform each cooperative of the fee percentage applied to 
the current year's landings and the total amount due (fee liability). 
NMFS advises cooperatives to inform NMFS if their contact information 
has changed. This fee liability letter would be sent to cooperative 
representatives after the fee was incurred (typically in the months 
following). The fee liability letter would be provided before fees are 
due on August 31 of each year. The letter would include a summary 
explaining the fee liability determination including the current fee 
percentage and details of CQ pounds debited from CQ allocations by 
permit, date, and prices.
    NMFS would require that all payments be submitted electronically in 
U.S. dollars through the NMFS Alaska Region website. Many of the 
cooperatives are familiar with, and regularly use, electronic 
submissions of various forms under other catch share programs, such as 
the AFA Program, and NMFS would extend this common practice to fee 
submission for the PCTC Program. Instructions for electronic payment 
would be made available on the payment website and through a fee 
liability summary letter NMFS would mail to the CQ permit holder.
    The cooperative representative would be responsible for paying cost 
recovery fees. Failure to pay cost recovery fee liabilities on time 
would result in NMFS not approving a cooperative's application for a CQ 
permit the following year until full payment of the fee liability is 
received by NMFS. This is because a CQ permit may not be issued until 
NMFS receives a complete application for CQ, which would include 
confirmation of the full payment of any cost recovery fee liability. 
Communication with NMFS using the contact information provided in the 
fee liability letter would provide ample opportunity for CQ permit 
holders to reconcile accounts. However, if the account is not 
reconciled and the individual does not pay, NMFS would send an initial 
administrative decision (IAD) to the CQ permit holder. The IAD would 
state that the CQ permit holder's estimated fee liability due from the 
CQ permit holder had not been paid. Any such formal determination may 
be appealed. The appeals process is described under 50 CFR 679.43. An 
applicant who appeals an IAD would not receive a new CQ permit until 
the appeal was resolved in the applicant's favor.
    After 30 days, the agency may pursue collection of the unpaid fees 
if the formal determination is not appealed and the account remains 
unpaid or under-paid. The Regional Administrator may continue to 
prohibit issuance of a CQ permit for any subsequent calendar years 
until NMFS receives the unpaid fees.
    The PCTC Program would follow this proposed cost recovery process 
that builds on existing cost recovery processes in other programs. NMFS 
would use standard prices derived from

[[Page 8613]]

volume and value reports, which are submitted in early November of each 
year, from the calendar year prior to the landings used to calculate 
the fee percentage. NMFS would begin tracking PCTC Program management 
costs in the calendar year 2023 once the rule is in effect. PCTC 
Program landings would be made in the A and B seasons, which extends 
from January 20 to June 10.
    To illustrate this in an example using the year 2025, the PCTC 
Program fishing year that would have landings subject to cost recovery 
would end June 10, 2025. NMFS would use standard prices derived from 
the volume and value report submitted by November 10, 2024 for landings 
made in 2024. Finally, NMFS would use the management costs from July, 
2024 through June, 2025 to calculate the 2025 fee percentage. By no 
later than July 31, 2025, the Regional Administrator would publish the 
standard price and fee percentage in a notice in the Federal Register 
and send invoices to cooperatives.

D. Monitoring Provisions

    The Council recommended and NMFS proposes requirements for observer 
coverage and other monitoring and enforcement provisions under the PCTC 
Program to ensure that fleet-wide harvests can be effectively monitored 
and that catches remain within allocations. These requirements include 
full observer coverage for CVs harvesting PCTC Program CQ (except for 
CVs delivering unsorted codends to motherships) and requirements for 
communications equipment to facilitate observer data entry and 
electronic transmission to NMFS. These monitoring provisions are 
designed to maximize the quality of data used to estimate PCTC Program 
catch and bycatch, including PSC. Delivered catch would be reported 
electronically by shoreside processors through eLandings. Estimates of 
at-sea discards and PSC would be derived solely from observer data. All 
catch would accumulate against cooperative allocations and other 
applicable limits.
    Under the North Pacific Observer Program (Observer Program), all 
vessels and processors in the groundfish and halibut fisheries off 
Alaska are placed into one of two categories: (1) The full observer 
coverage category, where vessels and processors obtain observer 
coverage by contracting directly with observer providers; and (2) the 
partial observer coverage category, where NMFS has the flexibility to 
deploy observers when and where they are needed, as described in the 
annual deployment plan that is developed by NMFS in consultation with 
the Council. NMFS funds observer deployment in the partial observer 
coverage category by assessing a 1.65 percent fee on the ex-vessel 
value of retained groundfish and halibut from vessels that are not in 
the full observer coverage category.
    The Council recommended and NMFS proposes that all vessels under 
the PCTC Program would be placed in the full coverage category of the 
Observer Program. All vessels used to harvest PCTC CQ would be required 
to carry at least one observer on board the vessel at all times except 
for CV deliveries of unsorted codends to a mothership pursuant to the 
exception specified at Sec.  679.51(a)(2).
    The owner of a trawl CV in the full observer coverage category 
would contract directly with a permitted full coverage observer 
provider to procure observer services as described at Sec.  679.51(d). 
The owner of a trawl CV in the full observer coverage category would 
not be required to log fishing trips in Observer Declare and Deploy 
System (ODDS) under Sec.  679.51(a)(1), and landings made by a vessel 
in the full observer coverage category would not be subject to the 1.65 
percent partial observer coverage fee under Sec.  679.55.
    This action would not modify observer coverage requirements for 
trawl CVs participating in the BSAI trawl limited access fisheries 
during the C season. Regulations at Subpart E to part 679 specifying 
observer coverage requirements would continue to apply. The owner of a 
trawl CV would continue to be able to request, on an annual basis, that 
NMFS place the vessel in the full observer coverage category for all 
directed fishing for groundfish using trawl gear in the BSAI in the 
following calendar year. Voluntary placement in the full coverage 
category would apply to all non-PCTC directed fishing for groundfish 
using trawl gear in the specified calendar year.
    Additionally, the Council recommended and NMFS proposes that all 
vessels used to harvest PCTC CQ would be required to provide equipment 
and at-sea data transmission capabilities to facilitate electronic 
transmission of observer data to NMFS. Requirements for non-AFA trawl 
CVs to install equipment necessary to facilitate at-sea observer data 
transmission requirements would not be effective until three years 
after the effective date of the final rule implementing the PCTC 
Program. This proposed rule also modifies regulations at Sec.  
679.51(e)(2)(iii)(A) to explicitly include the electronic transmission 
of observer data in the requirement for vessel operators to allow an 
observer to use the vessel's existing communications equipment for 
confidential entry, transmission, and receipt of work-related messages.
    Under this proposed rule, all vessels participating in the PCTC 
Program would be required to provide an onboard computer that meets 
minimum specifications for use by an observer. Currently, NMFS uses and 
installs custom software (ATLAS) on the vessel's computer, and this 
software application is used by observers to enter the data they 
collect. The ATLAS software contains business rules that perform many 
quality control and data validation checks automatically, which 
dramatically increases the quality of the preliminary data. After the 
observer data are entered into the ATLAS software, it is transmitted to 
NMFS.
    At-sea transmission of observer data improves data quality. To 
accommodate concerns by small vessel operators, the Council determined 
and NMFS proposes that, for the first three years after implementation, 
the current at-sea observer data transmission requirements would be 
maintained, unless the necessary equipment is installed before that 
time. Public testimony suggests that most of the vessels that do not 
currently have data transmission capability would realize the benefits 
from this program and be able to obtain the technology. Though the 
installation of equipment to facilitate at-sea data transmission on 
non-AFA vessels would not be required until after the first three years 
of the Program, this proposed rule clarifies that if the vessel already 
has equipment capable of facilitating at-sea data transmission, that 
equipment must be made available to the observer for use in 
transmitting work-related messages including collected data.
    NMFS proposes requiring motherships receiving unsorted codends from 
a PCTC Program CV to comply with catch monitoring requirements 
specified at Sec.  679.93(c) for Amendment 80 vessels and C/Ps. These 
requirements are already applicable to Amendment 80 C/Ps acting as a 
mothership and would continue to apply when participating vessels act 
as a mothership to process PCTC Program CQ. This proposed rule would 
not alter existing observer coverage requirements for trawl CVs 
delivering unsorted codends to a mothership in the BSAI. A trawl CV 
delivering unsorted codends to a mothership is not required to carry an 
observer because the catch is not brought on board the CV and not 
available for observer sampling. Rather, the catch is sorted and 
sampled by observers aboard the mothership.
    Participating motherships would be required to have at least two 
observers

[[Page 8614]]

aboard the mothership, at least one of whom would be required to be 
endorsed as a lead level 2 observer. More than two observers would be 
required to be aboard if the observer workload restriction would 
otherwise preclude sampling as required. All PCTC Program catch, except 
halibut sorted on deck by vessels participating in the halibut deck 
sorting described at Sec.  679.120, would be required to be weighed on 
a NMFS-approved scale in compliance with the scale requirements at 
Sec.  679.28(b). Each haul would be required to be weighed separately 
and all catch made available for sampling by an observer.
    NMFS proposes catch monitoring requirements for shoreside 
processors receiving deliveries from CVs harvesting PCTC Program 
Pacific cod. The Council recommended that all shoreside processors 
receiving deliveries from CVs harvesting PCTC Program Pacific cod would 
comply with a NMFS certified catch monitoring and control plan (CMCP); 
however, NMFS has determined that a CMCP is not necessary to ensure the 
accurate accounting of all PCTC landings. Instead, NMFS proposes that 
all groundfish landed by CVs described in Sec.  679.51(a)(2) would be 
required to be sorted, weighed on a scale approved by the State of 
Alaska as described in Sec.  679.28(c), and be made available for 
sampling by an observer, NMFS staff, or any individual authorized by 
NMFS. Any of these persons must be allowed to test any scale used to 
weigh groundfish to determine its accuracy.

E. PCTC Program Review

    Under the Magnuson-Stevens Act, a LAPP program review shall be 
undertaken five years after implementation, with additional reviews 
occurring, at a minimum, every seven years thereafter. A formal review 
of the proposed PCTC Program by the Council would take place five years 
after the implementation of the program and would help the Council 
determine if the program is functioning as intended. The review process 
would allow for a full evaluation of the program's successes or 
challenges and provide the Council with details on unanticipated 
consequences. The Council determined that a formal review process was 
essential to the PCTC Program as a key tool to assess whether the PCTC 
Program was achieving the goals of the Magnuson-Stevens Act and the 
problem statement as identified in the Analysis (see ADDRESSES). This 
review and evaluation by the Council would include an assessment of the 
program objectives. Specifically, the Council would review whether the 
allocation of Pacific cod is fair and equitable given participation in 
the fishery, historical investments in and dependence upon the fishery, 
and employment in the harvesting and processing sectors. The Council 
would also assess performance of the program based on changes in annual 
cooperative formation, changes in product value, the number and 
distribution of processing facilities, and stability or use of annual 
processor associations with harvesting cooperatives. The focus of these 
reviews would be the impact of this action on the harvesting and 
processing sectors, as well as on fishery dependent communities. The 
Council would also assess whether the needs for management and 
enforcement, as well as data collection and analysis, are adequately 
met. Because the Council would undertake this review as part of routine 
work, NMFS is not proposing regulatory changes to implement this review 
process.

IX. Examples of Allocations Under the PCTC Program

    The following section provides an example of QS allocations, annual 
CQ allocations, and PSC limit calculations under the proposed PCTC 
Program. For these examples, NMFS has used the 2022 harvest 
specifications for groundfish of the BSAI (87 FR 11626, March 2, 2022) 
to illustrate how annual TAC would correspond to issued QS, how 
portions of annual TAC would be allocated as CQ, and how annual PSC 
limits would be established for the cooperatives.

A. PCTC Program QS Pool Example

    The first step of PCTC Program implementation would be for NMFS to 
estimate the QS pools for both harvesters and processors.
Step 1: Determine the Total Legal Landings for PCTC Program Harvesters
    Using the official record, NMFS would sum the best 10 of 11 years 
of legal landings for all eligible LLP licenses during the 2009 through 
2019 qualifying years for directed harvest of Pacific cod (or best 15 
of 16 years from 2004 through 2019 for LLP licenses with transferable 
AI endorsements). This estimate may be subject to change if the 
official record is adjusted based on information provided through the 
QS application process.
Step 2: Determine the Total Deliveries of Legal Landings for PCTC 
Program Processors
    Using the official record, NMFS would sum the best 10 of 11 years 
of deliveries of legal landings for all eligible processors during the 
2009 through 2019 qualifying years for directed harvest of Pacific cod. 
This estimate may be subject to change if the official record is 
adjusted based on information provided through the QS application 
process.
Step 3: Establish the Initial PCTC Program QS Pools
    NMFS would set the initial QS pool for harvesters and processors 
equal to the sum of legal landings assigned to each LLP license or 
processor in metric tons as of December 31, 2022, according the process 
described in Step 1 and Step 2 above. Each metric ton of legal landings 
in NMFS's official record on this date would yield one QS unit.
    This example assumes that all potentially eligible persons applied, 
NMFS reviewed the applications, no applicant challenged the official 
record, and NMFS did not amend the official record. Each year, the 
harvester QS pool would correspond to 77.5 percent of the annual A and 
B season trawl CV DFA. Processor-held QS would correspond to 22.5 
percent of the annual A and B season trawl CV DFA.
Step 4: Assign QS to an LLP License Holder
    NMFS would assign QS to an LLP license holder who submits a timely 
and complete application within 30 days of the effective date of the 
final rule. Because issued QS would be permanently affixed to the LLP 
license, except under specific circumstances defined in Section III D, 
all qualifying LLP licenses would be reissued with PCTC Program QS.
Step 5: Assign QS to a Processor
    NMFS would assign QS to a processor who submits a timely and 
complete application by within 30 days of the effective date of the 
final rule. The PCTC Program would issue a new PCTC Program QS permit 
to eligible processors, and QS would be permanently attached to those 
QS permits, except under specific circumstances defined in Section III 
D.

B. TAC and CQ Example for the PCTC Program

    The annual trawl CV sector allocation is 22.1 percent of the 
combined BS subarea and AI subarea non-CDQ Pacific cod TAC. Table 1 in 
Section I of this preamble provides sector allocations for Pacific cod. 
The 2022 Pacific cod trawl CV sector allocation was 29,655 mt. The 
sector allocation is further subdivided between the A season (74 
percent), B season (11 percent), and C season (15 percent). As stated 
above, the PCTC

[[Page 8615]]

Program allocation would be derived from the A and B season 
apportionment of the annual trawl CV sector allocation. Before 
allocating A and B season TAC to the PCTC Program as CQ, NMFS would 
determine an ICA for each season that would be account for the 
incidental catch of Pacific cod in other groundfish fisheries. This ICA 
would be deducted from the A and B season trawl CV sector 
apportionments, and the remainder would represent the A and B season 
DFAs that would ultimately be allocated as CQ. For this example, NMFS 
uses an ICA placeholder amount of 1,000 mt for the A season and 500 mt 
for the B season. However, these ICAs are only for an example and the 
ICA may change each year depending on projected incidental catch needs. 
In 2022, if the PCTC Program were in effect, the DFA for the A and B 
season--i.e., the allocation of Pacific cod to the PCTC Program--would 
have been 20,945 mt in the A season ((29,655 x .74) - 1,000) and 2,762 
mt in the B season ((29,655 x .11) - 500), for a total of 23,707 mt. 
The C season DFA would have been 4,448 mt (29,655 x .15); there is no 
ICA for the C season).
    The PCTC Program apportionment would be assigned to PCTC 
cooperatives as CQ. The Council recommended and NMFS proposes that 77.5 
percent of the annual CQ would be issued to cooperatives proportionate 
to the harvester-held QS and 22.5 percent of the annual PCTC Program CQ 
would be issued to cooperatives proportionate to the processor-held QS.

   Table 5--Final 2022 Sector Allocation and Seasonal Allowances of the BSAI Pacific Cod TAC for the Trawl CV
                                           Sector and the PCTC Program
----------------------------------------------------------------------------------------------------------------
                                                                               77.5 Percent of
                                                                               annual PCTC CQ    22.5 Percent of
                                                               PCTC program       issued to     annual CQ issued
           Sector                      Season dates              2022 TAC     cooperatives for   to cooperatives
                                                               apportionment   harvester- held   for processor-
                                                                                 QS (in mt)      held QS (in mt)
----------------------------------------------------------------------------------------------------------------
Trawl CV sector TAC.........  ..............................          29,655  ................  ................
A Season ICA................  ..............................           1,000  ................  ................
PCTC Program A Season DFA     January 20-April 1............          20,945            16,232             4,713
 ((TAC x .74) - A season
 ICA).
B season ICA................  ..............................             500  ................  ................
PCTC Program B Season DFA     April 1-June 10...............           2,762             2,141               621
 ((TAC x .11) - B season
 ICA).
Limited Access C Season DFA   June 10-November 1............           4,448  ................  ................
 (TAC x .15).
----------------------------------------------------------------------------------------------------------------

C. Annual CQ Issuance Example

    Per Table 5, in this example the combined A and B season DFA to be 
issued as CQ totals 23,707 mt. Of that total, 77.5 percent (18,373 mt) 
would represent CQ derived from QS assigned to LLP licenses (harvester-
held QS pool), and 22.5 percent (5,334 mt) would represent CQ derived 
from QS held by processors (processor-held QS pool). To illustrate how 
CQ would be issued to cooperatives, assume that there are three groups 
of LLP licenses that associate with three groups of processors holding 
PCTC QS to form three cooperatives. The groups of LLP license holders 
hold 30, 4, and 66 percent of the harvester-held QS pool of 18,373 mt, 
respectively. The processors hold 8, 41, and 51 percent of the 
processor-held QS pool of 5,334 mt, respectively. Harvester Group 1 
associates with Processor Group 1 to form Cooperative 1, Harvester 
Group 2 associates with Processor Group 2 to form Cooperative 2, and 
Harvester Group 3 associates with Processor Group 3 to form Cooperative 
3.
    In this example, the cooperatives would be allocated annual totals 
of CQ as described in the table below (actual CQ permits would specify 
a separate CQ allocation for A and B seasons; those allocations are 
combined here for simplicity and to illustrate hypothetical annual 
totals):

                       Table 6--Examples of CQ Issuance to Three Hypothetical Cooperatives
----------------------------------------------------------------------------------------------------------------
                                                    Percent of      Percent of        2022 CQ      2022 Percent
                                                   harvester QS    processor QS    derived from    of PCTC total
                                                    (18,373 mt)     (5,334 mt)      QS (in mt)          CQ
----------------------------------------------------------------------------------------------------------------
Harvester 1.....................................              30  ..............           5,512  ..............
Processor 1.....................................  ..............               8             427  ..............
Cooperative 1...................................  ..............  ..............           5,939              25
Harvester 2.....................................               4  ..............             735  ..............
Processor 2.....................................  ..............              41           2,187  ..............
Cooperative 2...................................  ..............  ..............           2,922              12
Harvester 3.....................................              66  ..............          12,126  ..............
Processor 3.....................................  ..............              51           2,720  ..............
Cooperative 3...................................  ..............  ..............          14,846              63
    Total CQ issued in A and B season...........             100             100          23,707             100
----------------------------------------------------------------------------------------------------------------

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.

[[Page 8616]]

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.

Regulatory Impact Review (RIR)

    A Regulatory Impact Review (RIR) was prepared to assess all costs 
and benefits of available regulatory alternatives. A copy of this 
analysis is available from NMFS (see ADDRESSES). NMFS is recommending 
Amendment 122 and this proposed rule based on those measures that 
maximized net benefits to the Nation. Specific aspects of the economic 
analysis are discussed below in the Initial Regulatory Flexibility 
Analysis (IRFA) section.

Initial Regulatory Flexibility Analysis (IRFA)

    This IRFA was prepared, as required by Section 603 of the 
Regulatory Flexibility Act (RFA). The IRFA describes the economic 
impact this proposed rule, if adopted, would have on small entities. An 
IRFA describes why this action is being proposed; the objectives and 
legal basis for the proposed rule; the number of small entities to 
which the proposed rule would apply; any projected reporting, 
recordkeeping, or other compliance requirements of the proposed rule; 
any overlapping, duplicative, or conflicting Federal rules; and any 
significant alternatives to the proposed rule that would accomplish the 
stated objectives, consistent with applicable statutes, and that would 
minimize any significant adverse economic impacts of the proposed rule 
on small entities. Descriptions of this proposed rule, its purpose, and 
the legal basis are contained earlier in this preamble and are not 
repeated here.

Number and Description of Small Entities Regulated by This Proposed 
Rule

    The alternatives would directly regulate owners and operators of 
harvesters and processors that participate in the BSAI trawl CV Pacific 
cod fishery including (1) trawl CVs, (2) shoreside processors, (3) 
floating processors, (4) trawl C/Ps acting as motherships, and (5) 
small government jurisdictions in the AI. This action may also impact 
observer providers that support the BSAI trawl CV Pacific cod fishery, 
but they would be indirectly impacted. Therefore, observer providers 
are not considered directly regulated entities in the IRFA prepared for 
this action.
    A small business includes any firm that is independently owned and 
operated and not dominant in its field of operation. Businesses 
classified as primarily engaged in commercial fishing are considered 
small entities if they have less than 11 million dollars in annual 
gross receipts for all businesses in the commercial fishing industry 
(NAICS 11411). The RFA requires consideration of affiliations between 
entities for the purpose of assessing whether an entity is classified 
as small. The AFA pollock cooperatives, which make up a subset of the 
entities regulated under this proposed rule, are types of affiliation 
between entities. All of the AFA cooperatives have gross annual 
revenues that are substantially greater than 11 million dollars. 
Therefore, NMFS considers members in these cooperatives to be 
``affiliated'' large (non-small) entities for RFA purposes. The 
eligible AFA entities are large entities based on those affiliations. 
The remaining 13 trawl CVs would be considered small entities. This 
count includes five trawl CVs that are greater than 60 ft LOA and eight 
CVs that are less than 60 ft LOA with a transferable AI endorsement.
    Though C/Ps engage in both fish harvesting and fish processing 
activities, since at least 1993, NMFS Alaska Region has considered C/Ps 
to be predominantly engaged in fish harvesting rather than fish 
processing. Under this classification, the threshold of 11 million 
dollars in annual gross receipts is the appropriate threshold to apply 
to identify any C/Ps that are small entities. All the C/Ps that are 
directed regulated by this action do not meet the Small Business 
Administration (SBA) definition of a small entity due to cooperative 
affiliation.
    Under the SBA's size standard for ``seafood product preparation and 
packaging'' (NAICS code 311710), seafood processors are considered 
small entities if they are independently owned and operated, not 
dominant in their field of operation, and have a combined annual 
employment of fewer than 750 employees. Of the plants that took 
deliveries of Pacific cod from 2017 through 2019 that are currently in 
business, one firm would be considered a small entity.
    The RFA defines ``small governmental jurisdiction'' as the 
government of a city, county, town, school district or special district 
with a population of less than 50,000 people. Two small governmental 
jurisdictions are directly regulated under the proposed action. Adak 
and Atka would be required to submit a notice of their intent to 
process to NMFS to receive a portion of the AI CQ set-aside described 
in Section V of this preamble. The set-aside amount is intended to 
benefit the AI communities and participation by these communities is 
voluntary.

Description of Significant Alternatives That Minimize Adverse Impacts 
on Small Entities

    The Council considered an extensive and elaborate suite of 
alternatives, options, and sub-options as it designed and evaluated a 
quota share program for the BSAI Pacific cod trawl CV sector, including 
a ``no action'' alternative. The RIR presents the complete set of 
alternatives, in various combinations with the complex suite of 
elements and options. The Council selected a preferred alternative that 
includes a suite of elements and options to manage the BSAI trawl CV 
Pacific cod sector. The alternatives proposed include no action 
(Alternative 1) and action to implement a cooperative style LAPP for 
the BSAI Pacific cod trawl CV sector (Alternatives 2a and 2b and 
Alternative 3, which is the Council's recommended action).
    In general, the recommended LAPP includes allocations of QS to 
groundfish LLP licenses based on the legal landings of targeted BSAI 
Pacific cod in a Federal fishery during a range of qualifying years 
included in the options. The recommended action also allocates QS to a 
processor permit based on processing history of legal landings of BSAI 
Pacific cod harvested in a Federal fishery and deducted from the BSAI 
trawl CV sector apportionment during the qualifying years. One 
alternative considered but removed included gear conversion, which 
would have authorized BSAI Pacific cod quota associated with trawl CV 
LLP licenses to be fished annually by CVs using pot gear. In the end, 
the Council did not include the gear conversion element in its 
preferred alternative due to concerns over the possibility of high crab 
PSC in pot gear for red king crab (Zone 1) and C. opilio.
    A second option considered but removed was a cooperative formation 
approach based on existing AFA and non-AFA membership. The AFA vessels 
and non-AFA vessels would have formed their cooperatives independently 
of each other. A person owning both an AFA vessel and non-AFA vessel 
would have been required to join the AFA cooperative for the AFA vessel 
and the non-AFA cooperative for the non-AFA vessel. Allowing only an 
AFA and non-AFA cooperative was rejected by the Council after 
considering the obstacles it would create under the various program 
elements being considered by the Council and withdrawal of industry 
support for the option. For example, under the options

[[Page 8617]]

that would allocate quota to processors, it would create a situation 
where multiple processors could designate CQ to a cooperative and 
require that the cooperative negotiate the terms and conditions of the 
harvest of those Pacific cod. This would have raised antitrust concerns 
that would need to be carefully navigated. Integrating multiple 
processors, the potential limitation on competition, and reduced 
cooperative formation choice were ultimately the issues associated with 
the two cooperative approach that led to it being removed from 
consideration. The recommended action allows a cooperative to associate 
with one processor. This model has been used successfully in the AFA 
program and CGOA Rockfish Program and reduces antitrust concerns that 
were raised to the Council under the AFA and non-AFA cooperative 
structure.
    These alternatives constitute the suite of ``significant 
alternatives,'' under this proposed action, for purposes of the RFA. 
Based upon the best available scientific data, and consideration of the 
objectives of this action, NMFS did not identify alternatives to the 
proposed action that have the potential to accomplish the stated 
objectives of the Magnuson-Stevens Act and any other applicable 
statutes and that have the potential to minimize any significant 
adverse economic impact of the proposed rule on small entities. After 
public process, the Council concluded that the proposed PCTC Program 
would best accomplish the stated objectives articulated in the problem 
statement and applicable statutes, and minimize to the extent 
practicable adverse economic impacts on the universe of directly 
regulated small entities.

Duplicate, Overlapping, or Conflicting Federal Rules

    No Federal rules that may duplicate, overlap, or conflict with this 
proposed action have been identified.

Recordkeeping, Reporting, and Other Compliance Requirements

    This action would implement new recordkeeping, reporting, and 
compliance requirements and revise existing requirements. These 
requirements are necessary for the management and monitoring of the 
PCTC Program.
    All PCTC program participants would be required to provide 
additional information to NMFS for management purposes. Each harvester 
would be required to track harvests to avoid exceeding their 
allocation. As in other North Pacific rationalized fisheries, 
processors would provide catch recording data to managers to monitor 
harvest of allocations. Processors would be required to record 
deliveries and processing activities to aid in the Program 
administration.
    To participate in the Program, persons are required to complete 
application forms, transfer forms, reporting requirements, and 
monitoring requirements. These requirements impose costs on small 
entities in gathering the required information and completing the 
information collections.
    NMFS has estimated the costs of complying with the requirements 
based on information such as the burden hours per response, number of 
responses per year, and wage rate estimates from industry or the Bureau 
of Labor Statistics. Persons are required to complete many of the 
requirements at the start of the Program, such as the application to 
participate in the Program. Persons are required to complete some 
requirements every year, such as the cooperative application. 
Additionally, reporting for purposes of catch accounting or transfer of 
CQ among cooperatives is completed more frequently. The impacts of 
these changes are described in more detail in Sections 2.10.7 and 
2.10.12 of the Analysis prepared for this proposed rule (see 
ADDRESSES).
    New requirements for the PCTC Program include the Application for 
PCTC Program QS, the 90-day transfer window, the Application for PCTC 
Program CQ, the Application for Transfer of PCTC Program QS for 
Processors, the AI notice of intent to process, inter-cooperative 
transfers, the appeals process, and cost recovery fee.
    The initial allocation process requires all eligible harvesters and 
processors who want to participate in the PCTC Program to submit an 
Application for PCTC Program QS to receive QS. This application is 
needed to determine the allocation of QS to eligible LLP licenses and 
to eligible processors. For CVs, NMFS will use the Catch Accounting 
System data to determine how much Pacific cod was harvested using the 
LLP license authorizing a CV and ask the current LLP license holder to 
verify the catch estimate. For processors NMFS will use the Catch 
Accounting System data to determine the amount of qualifying Pacific 
cod delivered to the processor, and the processors will verify the 
estimates. That information will also be used to determine whether the 
QS holder complies with the ownership and use cap limitations imposed 
under the program. Allowing persons to harvest a given percentage of 
the fishery is anticipated to allow harvesters to avoid fishing in bad 
weather conditions, improving safety of the fleet. The fleet is also 
expected to be able to deliver a consistently higher quality product. 
Quality improvements are expected to result from shorter times between 
harvest and processing and less damage to the fish in the holds by not 
fishing in bad weather.
    In addition, the initial allocation process has a 90-day transfer 
window to allow persons to transfer QS between non-exempt AFA LLP 
licenses under certain conditions to honor private contracts and 
agreements associated with harvest of the AFA Pacific cod sideboard 
limits. This transfer window would allow persons to resolve any 
disputes or request QS transfers between LLP licenses. After the 90-day 
window for these transfers has closed, QS could not be separated from 
an LLP license or transferable AI endorsement unless necessary to 
prevent exceedances of the ownership or use caps, or if required by an 
operation of law.
    The PCTC Program would include a standardized appeals process. The 
appeals process provides participants the required opportunity to 
dispute the catch and processing history records in the Catch 
Accounting System that are used to determine a person's allocation of 
QS. The appeals process is in addition to the 90-day transfer window 
discussed above and open to all participants, not just non-exempt AFA 
vessels.
    Each year the cooperative manager would be required to submit an 
Application for PCTC Program CQ that identifies the LLP licenses and 
processor QS permits named to the cooperative and the vessels allowed 
to harvest the CQ. This application would include the inter-cooperative 
agreement that defines how the AI CQ set-aside will be harvested during 
years it is in effect. The Council requests that cooperatives submit an 
annual cooperative report to the Council.
    The Application of Transfer of PCTC Program QS for Processors would 
be required for eligible processors to transfer their QS to other 
processors. Processor QS assigned to a processor permit established 
under the PCTC program may be transferred through the eFish system with 
approval by NMFS.
    The PCTC program requires the cooperatives to set aside 12.5 
percent of their allocation for delivery to Aleutian Island shoreplants 
in years that a representative from the City of Adak or the City of 
Atka files a valid intent to process with NMFS. The intent to process 
is necessary for NMFS and the cooperatives to know whether the 
regulations established for the set-aside are in effect during the A 
and B seasons.

[[Page 8618]]

If an intent to process is filed, it also triggers additional reporting 
in the cooperative report to the Council.
    The PCTC Program is a LAPP and therefore NMFS is required to 
collect fees for the PCTC Program under sections 303A and 304(d)(2) of 
the Magnuson-Stevens Act. Section 304(d)(2) of the Magnuson-Stevens Act 
limits the cost recovery fee so that it may not exceed 3 percent of the 
ex-vessel value of the Pacific cod harvested under the PCTC Program. 
Ex-vessel volume and value reports currently being used to establish an 
average annual price for BSAI trawl caught Pacific cod would be used to 
establish the standard price and no additional collection of price data 
would be necessary. NMFS uses this information to meet the required 
provisions in sections 303A and 304(d) of the Magnuson-Stevens Act that 
require NMFS to collect these fees associated with recoverable costs.
    In addition to the new requirements, the PCTC Program would revise 
existing requirements.
    If LLP license holders want to transfer their LLP license or 
transferable AI endorsement and the associated PCTC Program QS, they 
must fill out an Application to Transfer a Groundfish or Crab LLP 
License. This form would be revised to collect information on the PCTC 
QS transaction, including QS prices, amount transferred, and whether 
there are multiple transferees in the event ownership caps would 
otherwise be exceeded. Information would be added to the LLP license 
transfer form identifying how PCTC QS would be distributed to the other 
LLP licenses if the original holder of the LLP license was assigned QS 
that was over the 5 percent ownership cap and qualified for the legacy 
exemption.
    The PCTC Program would require updating ATLAS data transmission to 
enable the timely electronic entry, archival, and transmission of 
observer data for at-sea operations and shorebased processing plants.
    This rule would require that all vessels submit logbooks when 
fishing in the PCTC program. All CVs greater than or equal to 60 ft LOA 
currently submit logbooks. Some CVs that may participate in the AI 
Pacific cod fishery are less than 60 ft LOA and may already file 
logbooks when fishing for Pacific cod. Many already complete logbooks 
based on their participation in other programs. However, a small number 
of CVs less than 60 ft LOA that do not currently submit a logbook would 
likely need to begin submitting a logbook if they choose to participate 
in the PCTC Program.

Paperwork Reduction Act

    This proposed rule contains collection of information requirements 
subject to review and approval by OMB under the Paperwork Reduction Act 
(PRA). This proposed rule would add new collections of information for 
the PCTC Program under a new OMB control number and revise requirements 
for collections of information under existing OMB Control Numbers 0648-
0213 (Alaska Region Logbook and Activity Family of Forms); -0318 (North 
Pacific Observer Program); -0334 (Alaska License Limitation Program for 
Groundfish, Crab, and Scallops); -0711 (Alaska Cost Recovery and Fee 
Programs); -0678 (North Pacific Fishery Management Council Cooperative 
Annual Reports); and -0515 (Alaska Interagency Electronic Reporting 
System). However, because the collection of information authorized by 
OMB Control Number 0648-0515 is concurrently being revised in a 
separate action, the revisions to that collection of information in 
this proposed rule will be assigned a temporary control number that 
will later be merged into 0648-0515. The existing collections of 
information under OMB control numbers 0648-0330 (NMFS Alaska Region 
Scale & Catch Weighing Requirements) and 0648-0445 (NMFS Alaska Region 
Vessel Monitoring System (VMS) Program) will also provide information 
needed to implement the PCTC Program and will continue to apply. This 
proposed rule would not make any changes to these two collections of 
information. The public reporting burden estimates provided below for 
these collections of information include the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
OMB Control Number 0648-NEW
    This proposed rule would create a new collection of information 
needed to implement PCTC Program. This new collection of information 
would authorize applications and processes used by the PCTC Program 
cooperatives, processors, LLP license holders, and community 
representatives to apply for permits, to transfer cooperative quota and 
quota share, to manage fishing and processor activity, and to appeal 
agency decisions. This new collection is necessary for NMFS to 
implement, monitor, and enforce the PCTC Program. The data would be 
used to ensure that program participants adhere to all harvesting, 
processing, ownership, and use limits. More information on these new 
requirements is provided in the Classification section of this proposed 
rule under the heading ``Recordkeeping, Reporting, and Other Compliance 
Requirements.''
    The public reporting burden per individual response is estimated to 
average 2 hours for the Application for Pacific Cod Trawl Cooperative 
Program Quota Share, 2 hours for the Application for Pacific Cod Trawl 
Cooperative Program Cooperative Quota, 2 hours for the Application for 
Transfer of Pacific Cod Trawl Cooperative Program Quota Share for 
Processors, 10 minutes for the Application for Inter-Cooperative 
Transfer of Cooperative Quota, 30 minutes for the notification of 
intent to process Aleutian Islands Pacific cod, 2 hours for the 90-day 
transfer window for non-exempt AFA LLP license holders, and 4 hours for 
appeals.
OMB Control Number 0648-0213
    This proposed rule would revise the existing requirements for the 
collection of information 0648-0213 related to logbooks because CVs 
participating in the PCTC Program would be required to submit a CV 
trawl gear daily fishing logbook. Some CVs less than 60 ft LOA that do 
not currently submit this logbook would need to begin doing so to 
participate in the PCTC Program. The revision to this collection of 
information adds the CVs less than 60 ft LOA that would need to start 
using the CV trawl gear daily fishing logbook as new respondents. CVs 
participating in the PCTC Program would have the option of using either 
the paper logbook approved under this collection or the electronic 
option, which is approved under OMB Control Number 0648-0515. The PCTC 
Program does not change the information collected by this logbook. This 
rule would require C/Ps and shoreside processors authorized as 
processors in the PCTC Program to submit a product transfer report; 
however, no changes would be needed to the respondents or responses for 
this report because all expected respondents are currently submitting 
it. The public reporting burden per individual response is estimated to 
average 18 minutes for the Catcher Vessel Trawl Daily Fishing Log and 
20 minutes for the Product Transfer Report.
OMB Control Number 0648-0318
    This proposed rule would revise the existing requirements for the 
collection of information 0648-0318 related to the North Pacific 
Observer Program because all vessels participating in the PCTC program 
would be required to have a

[[Page 8619]]

computer onboard and use ATLAS to submit observer data to NMFS. This 
would increase the number of vessels that need to provide observers 
access to a computer with ATLAS installed. PCTC Program participants 
would have up to three years to install ATLAS. Most vessels comply with 
this requirement by allowing NMFS to install ATLAS on an existing 
computer on the vessel. Many, if not all, of the vessels that would 
need to install ATLAS already have a computer that meets the minimum 
requirements, and they would only incur costs if they choose to 
purchase an additional computer. Estimated costs to purchase and 
install the data transmission system vary from about $5,000 to $37,000, 
depending on what a vessel needs to install. This rule also revises the 
existing requirements in this collection because catcher vessels that 
choose to participate in the PCTC Program would be required to be in 
the full observer coverage category instead of the partial observer 
coverage category. These catcher vessels would no longer be required to 
use ODDS to log fishing trips; therefore, this would decrease the 
number of respondents that log trips in ODDS. The public reporting 
burden per individual response is estimated to average 15 minutes to 
log a trip in ODDS.
OMB Control Number 0648-0334
    This proposed rule would revise the existing requirements for the 
collection of information 0648-0334 related to the LLP license and the 
transferable AI endorsement to include PCTC Program QS information on 
the groundfish/crab LLP license transfer application form. Subject to 
public comment, no change is made to the burden because the estimate 
allows for differences in the time needed to complete and submit the 
form. The public reporting burden per individual response is estimated 
to average 1 hour for the Application for Transfer LLP Groundfish/Crab 
License.
OMB Control Number 0648-TEMPORARY
    This proposed rule would revise the collection of information under 
OMB Control Number 0648-0515 associated with electronic reporting. 
However, due to multiple concurrent actions for that collection, the 
collection-of-information requirements will be assigned a temporary 
control number that will later be merged into OMB Control Number 0648-
0515.
    PCTC Program participants would need to use eLandings to submit 
landings and production information, which is approved under control 
number OMB 0648-0515. CVs participating in the PCTC Program would be 
required to submit a CV trawl gear daily fishing logbook and may use 
either the electronic logbook approved under OMB Control Number 0648-
0515 or the paper logbook approved under OMB Control Number 0648-0213. 
CVs greater than 60 ft LOA are already required to maintain logbooks 
but this would be a new requirement for CVs less than 60 ft LOA. Some 
CVs less than 60 ft LOA that do not current submit the logbook would 
need to begin doing so. The temporary control number would cover the 
revisions necessary to -0515 for the CVs that choose to submit 
electronic logbooks. The PCTC Program does not change the information 
collected by this logbook but does increase the number of participants 
required to submit it. The public reporting burden per individual 
response is estimated to average 15 minutes for the CV electronic 
logbook.
OMB Control Number 0648-0678
    This rule would revise the existing collection of information under 
0648-0678 to because the Council requests PCTC Program cooperatives 
submit a voluntary annual cooperative report to the Council. This 
revision would add the PCTC Program cooperatives as new respondents 
that will submit an annual cooperative report. The public reporting 
burden per individual response is estimated to average 18 hours for the 
PCTC Program annual report.
OMB Control Number 0648-0711
    This proposed rule would revise the existing requirements for the 
collection of information 0648-0711 related to cost recovery because 
the PCTC Program is a LAPP that is subject to a cost recovery fee under 
MSA 303A. This revision adds the PCTC Program cooperatives as new 
respondents that will submit a cost recovery fee to NMFS. The rule 
would require PCTC processors to submit an annual Pacific Cod Ex-vessel 
Volume and Value Report; however, this would not change the respondents 
or responses for this report because all expected respondents are 
currently submitting it. The public reporting burden per individual 
response is estimated to average 1 minute for the PCTC cost recovery 
fee and 1 minute for the Pacific Cod Ex-vessel Volume and Value Report.
Public Comments
    Public comment is sought regarding: whether these proposed 
information collections 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 collection of information, 
including through the use of automated collection techniques or other 
forms of information technology. Submit comments on these or any other 
aspects of the collection of information to NMFS Alaska Region (see 
ADDRESSES) or at www.reginfo.gov/public/do/PRAMain.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB control number.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: January 19, 2023.
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 679 is 
proposed to be amended as follows:

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

0
1. 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
2. Amend Sec.  679.2 by:
0
a. Removing the definitions of ``Affiliation for the purpose of 
defining AFA and the Rockfish Program'';
0
b. Adding the definitions of ``Affiliation for the purpose of defining 
AFA, Rockfish Program, and PCTC Program'';
0
c. Republishing the definition of ``Aleutian Islands shoreplant'';
0
d. Revising the definitions of ``Cooperative quota'' and ``CQ Permit''; 
and
0
e. Adding in alphabetical order the definitions of ``NMFS Alaska Region 
website,'' ``Pacific Cod Trawl Cooperative (PCTC) Program,'' ``PCTC 
Program cooperative,'' ``PCTC Program CQ,'' ``PCTC Program harvester QS 
pool,'' ``PCTC Program official record,'' ``PCTC Program 
participants,'' ``PCTC Program processor QS pool'', ``PCTC Program QS 
unit,'' and ``PCTC Program quota share (QS)''.
    The additions and revisions read as follows:

[[Page 8620]]

 Sec.  679.2  Definitions.

* * * * *
    Affiliation for the purpose of defining AFA, Rockfish Program, and 
PCTC Program means a relationship between two or more individuals, 
corporations, or other business concerns, except CDQ groups, in which 
one concern directly or indirectly owns a 10 percent or greater 
interest in another, exerts control over another, or has the power to 
exert control over another; or a third individual, corporation, or 
other business concern directly or indirectly owns a 10 percent or 
greater interest in both, exerts control over both, or has the power to 
exert control over both.
    (1) What is 10 percent or greater ownership? For the purpose of 
determining affiliation, 10 percent or greater ownership is deemed to 
exist if an individual, corporation, or other business concern directly 
or indirectly owns 10 percent or greater interest in a second 
corporation or other business concern.
    (2) What is an indirect interest? An indirect interest is one that 
passes through one or more intermediate entities. An entity's 
percentage of indirect interest in a second entity is equal to the 
entity's percentage of direct interest in an intermediate entity 
multiplied by the intermediate entity's direct or indirect interest in 
the second entity.
    (3) What is control? For the purpose of determining affiliation, 
control is deemed to exist if an individual, corporation, or other 
business concern has any of the following relationships or forms of 
control over another individual, corporation, or other business 
concern:
    (i) Controls 10 percent or more of the voting stock of another 
corporation or business concern;
    (ii) Has the authority to direct the business of the entity that 
owns the fishing vessel or processor. The authority to direct the 
business of the entity does not include the right to simply participate 
in the direction of the business activities of an entity that owns a 
fishing vessel or processor;
    (iii) Has the authority in the ordinary course of business to limit 
the actions of or to replace the chief executive officer, a majority of 
the board of directors, any general partner or any person serving in a 
management capacity of an entity that holds 10 percent or greater 
interest in a fishing vessel or processor. Standard rights of minority 
shareholders to restrict the actions of the entity are not included in 
this definition of control provided they are unrelated to day-to-day 
business activities. These rights include provisions to require the 
consent of the minority shareholder to sell all or substantially all 
the assets, to enter into a different business, to contract with the 
major investors or their affiliates, or to guarantee the obligations of 
majority investors or their affiliates;
    (iv) Has the authority to direct the transfer, operation, or 
manning of a fishing vessel or processor. The authority to direct the 
transfer, operation, or manning of a vessel or processor does not 
include the right to simply participate in such activities;
    (v) Has the authority to control the management of or to be a 
controlling factor in the entity that holds 10 percent or greater 
interest in a fishing vessel or processor;
    (vi) Absorbs all the costs and normal business risks associated 
with ownership and operation of a fishing vessel or processor;
    (vii) Has the responsibility to procure insurance on the fishing 
vessel or processor, or assumes any liability in excess of insurance 
coverage;
    (viii) Has the authority to control a fishery cooperative through 
10 percent or greater ownership or control over a majority of the 
vessels in the cooperative, has the authority to appoint, remove, or 
limit the actions of or replace the chief executive officer of the 
cooperative, or has the authority to appoint, remove, or limit the 
actions of a majority of the board of directors of the cooperative. In 
such instance, all members of the cooperative are considered affiliates 
of the individual, corporation, or other business concern that exerts 
control over the cooperative; or
    (ix) Has the ability through any other means whatsoever to control 
the entity that holds 10 percent or greater interest in a fishing 
vessel or processor.
* * * * *
    Aleutian Islands shoreplant means a processing facility that is 
physically located on land west of 170[deg] W longitude within the 
State of Alaska.
* * * * *
    Cooperative quota (CQ):
    (1) For purposes of the Amendment 80 Program means:
    (i) The annual catch limit of an Amendment 80 species that may be 
caught by an Amendment 80 cooperative while fishing under a CQ permit;
    (ii) The amount of annual halibut and crab PSC that may be used by 
an Amendment 80 cooperative while fishing under a CQ permit.
    (2) For purposes of the Rockfish Program means:
    (i) The annual catch limit of a rockfish primary species or 
rockfish secondary species that may be harvested by a rockfish 
cooperative while fishing under a CQ permit;
    (ii) The amount of annual halibut PSC that may be used by a 
rockfish cooperative in the Central GOA while fishing under a CQ permit 
(see rockfish halibut PSC in this section).
    (3) For purposes of the PCTC Program means:
    (i) The annual catch limit of Pacific cod that may be caught by a 
PCTC Program cooperative while fishing under a CQ permit;
    (ii) The amount of annual halibut and crab PSC that may be used by 
a PCTC Program cooperative while fishing under a CQ permit.
* * * * *
    CQ permit means a permit issued to an Amendment 80 cooperative 
under Sec.  679.4(o)(2), a rockfish cooperative under Sec.  
679.4(n)(1), or a PCTC Program cooperative under Sec.  679.131(a).
* * * * *
    NMFS Alaska Region website means https://www.fisheries.noaa.gov/region/alaska.
* * * * *
    Pacific Cod Trawl Cooperative (PCTC) Program means the Pacific Cod 
Trawl Cooperative Program as implemented under subpart L of this part.
* * * * *
    PCTC Program cooperative means a group of eligible Pacific cod 
harvesters who have chosen to form a cooperative under the requirements 
in Sec.  679.132 in order to combine and harvest fish collectively 
under a CQ permit issued by NMFS.
    PCTC Program CQ (See CQ)
    PCTC Program harvester QS pool means the sum of Pacific cod QS 
units assigned to LLP licenses established for the PCTC Program fishery 
based on the PCTC Program official record.
    PCTC Program official record means information used by NMFS 
necessary to determine eligibility to participate in the PCTC Program 
and assign specific harvest privileges or limits to PCTC Program 
participants based on Pacific cod legal landings as defined at Sec.  
679.130.
    PCTC Program participants means those PCTC Program eligible 
harvesters and eligible processors who receive Pacific cod QS.
    PCTC Program processor QS pool means the sum of Pacific cod QS 
units assigned to processor permits issued under the PCTC Program based 
on the PCTC Program official record.
    PCTC Program QS unit means a single share of the PCTC Program QS 
pool based on Pacific cod legal landings.
    PCTC Program quota share (QS) means QS units issued by NMFS

[[Page 8621]]

expressed in metric tons, derived from the Pacific cod legal landings 
assigned to an LLP license or PCTC Program QS permit held by a 
processor and used as the basis for the issuance of annual CQ.
* * * * *
0
3. In Sec.  679.4, add paragraphs (a)(1)(xvi), (k)(16) and paragraph 
(q) to read as follows:


Sec.  679.4  Permits.

    (a) * * *
    (1) * * *

------------------------------------------------------------------------
                                  Permit is in effect       For more
If program permit or card type      from issue date     information, see
              is:                 through the end of:         . . .
------------------------------------------------------------------------
 
                              * * * * * * *
(xvi) PCTC Program:
    (A) PCTC Program QS permit  10 Years..............  Paragraph (q) of
     (for processors).                                   this section.
    (B) PCTC Program CQ permit  Until expiration date   Paragraph (q) of
                                 shown on permit.        this section.
------------------------------------------------------------------------

* * * * *
    (k) * * *
    (16) PCTC Program. In addition to other requirements of this part, 
an LLP license holder must have PCTC Program QS assigned to their 
groundfish LLP license to join a PCTC Program cooperative to harvest 
Pacific cod.
* * * * *
    (q) PCTC Program Permits.
    (1) PCTC Program Cooperative Quota Permits. (i) A CQ permit is 
issued annually to a PCTC Program cooperative if the members of that 
cooperative have submitted a complete and timely application for CQ as 
described in Sec.  679.131 that is approved by the Regional 
Administrator. A CQ permit authorizes a PCTC Program cooperative to 
participate in the PCTC Program. The CQ permit will indicate the amount 
of Pacific cod that may be harvested by the PCTC Program cooperative, 
and the amount of halibut PSC and crab PSC that may be used by the PCTC 
Program cooperative. The CQ permit will list the members of the PCTC 
Program cooperative, the trawl catcher vessels that are authorized to 
fish under the CQ permit for that cooperative, and the PCTC Program 
processor(s) with whom that cooperative is associated.
    (ii) A CQ permit is valid only until the end of the BSAI Pacific 
cod B season for the year in which the CQ permit is issued;
    (iii) A legible copy of a valid CQ permit must be carried on board 
the vessel(s) used by the PCTC Program cooperative.
    (2) PCTC Program Quota Share Permits for Processors.
    (i) NMFS will issue PCTC Program QS permits to eligible processors 
if the owner(s) submits to the Regional Administrator a completed 
application for PCTC Program QS as described in Sec.  679.130 that is 
subsequently approved.
    (ii) A processor may associate the QS assigned to the PCTC Program 
QS permit to a PCTC Program cooperative as described in Sec.  679.131.
* * * * *
0
4. Amend Sec.  679.5 by:
0
a. Adding paragraph (a)(1)(iii)(G);
0
b. Revising paragraph (a)(4)(i); and
0
c. Adding paragraph (x).
    The additions and revisions read as follows:


Sec.  679.5  Recordkeeping and Reporting (R&R).

    (a) * * *
    (1) * * *
    (iii) * * *

------------------------------------------------------------------------
                                                          For more
 If harvest made under . . .    Record the . . .    information, see . .
           program                                            .
------------------------------------------------------------------------
 
                              * * * * * * *
(G) PCTC Program............  Cooperative number..  subpart L to this
                                                     part.
 
                              * * * * * * *
------------------------------------------------------------------------

    (4) * * *
    (i) Catcher vessels less than 60 ft (18.3 m) LOA. Except for 
vessels using pot gear as described in paragraph (c)(3)(i)(B)(1) of 
this section or vessels participating in the PCTC Program as described 
in paragraph (x) of this section, the owner or operator of a catcher 
vessel less than 60 ft (18.3 m) LOA is not required to comply with the 
R&R requirements of this section, but must comply with the vessel 
activity report described at paragraph (k) of this section.
* * * * *
    (x) PCTC Program. The owners and operators of catcher vessels and 
processors authorized as participants in the PCTC Program must comply 
with the applicable recordkeeping and reporting requirements of this 
section and must assign all catch to a PCTC Program cooperative at the 
time of catch or receipt of groundfish. Owners of catcher vessels and 
processors authorized as participants in the PCTC Program must ensure 
that their designated representatives or employees comply with 
applicable recordkeeping and reporting requirements as described in 
Sec.  679.134.
0
5. In Sec.  679.7 add paragraph (m) to read as follows:


Sec.  679.7  Prohibitions.

* * * * *
    (m) PCTC Program--
    (1) General.
    (i) Name an LLP license in more than one PCTC Program cooperative 
application in a fishing year.
    (ii) Use a vessel to catch or receive a PCTC Program cooperative's 
Pacific cod when that vessel was not listed on the PCTC Program 
cooperative's application for PCTC Program CQ.
    (iii) Fail to comply with any other requirement or restriction 
specified in this part or violate any provision of this part.
    (2) Vessel operators participating in the PCTC Program.
    (i) Fail to follow the catch monitoring requirements detailed in 
Sec.  679.134 while fishing under a CQ permit issued to a PCTC Program 
cooperative.
    (ii) Operate a vessel that is subject to a sideboard limit detailed 
in Sec.  679.133, as applicable, and fail to follow the catch 
monitoring requirements detailed in Sec.  679.134.
    (iii) Exceed the ownership or use caps specified at Sec.  679.133. 
Owners and operators of vessels participating in the

[[Page 8622]]

PCTC Program are jointly and severally liable for any violation of PCTC 
Program regulations while fishing under the authority of a CQ permit.
    (3) VMS.
    (i) Operate a vessel in a PCTC Program cooperative and fail to use 
functioning VMS equipment as described at Sec.  679.134.
    (ii) Operate a vessel that is subject to a sideboard limit detailed 
in Sec.  679.133 and fail to use functioning VMS equipment as described 
in Sec.  679.134.
    (4) PCTC Program processors.
    (i) Take deliveries of, or process, PCTC Program Pacific cod 
harvested by a catcher vessel fishing under the authority of a PCTC CQ 
permit unless operating as a processor.
    (ii) Process any groundfish delivered by a catcher vessel fishing 
under the authority of a CQ permit not weighed on a scale approved by 
the State of Alaska. The scale must meet the requirements specified in 
Sec.  679.28(c).
    (iii) Fail to submit a timely and complete Pacific cod Ex-vessel 
Volume and Value Report as required under Sec.  679.5(u)(1).
    (iv) Use a catcher/processor designated on an LLP license with a 
BSAI Pacific cod trawl mothership endorsement to sort, process, or 
discard any species, except halibut sorted on deck by vessels 
participating in halibut deck sorting described at Sec.  679.120, 
before the total catch is weighed on a scale that meets the 
requirements of Sec.  679.28(b).
    (v) Use a catcher/processor designated on an LLP license with a 
BSAI Pacific cod trawl mothership endorsement to process Pacific cod in 
excess of the at-sea processing sideboard limit defined at Sec.  
679.133(b)(2) and assigned to the LLP license.
    (vi) Process an amount of Pacific cod that exceeds use caps 
specified in Sec.  679.133. The owners and operators of the individual 
processors that process Pacific cod are jointly and severally liable 
for any violation of PCTC Program regulations.
    (5) PCTC cooperatives.
    (i) Fail to retain any Pacific cod caught by a vessel when that 
vessel is fishing under the authority of a PCTC Program cooperative CQ 
permit.
    (ii) Harvest PCTC Program Pacific cod, use halibut PSC, or use crab 
PSC assigned to a PCTC cooperative in the BSAI without having on board 
a legible copy of valid PCTC Program CQ permit.
    (iii) Begin a fishing trip for PCTC Program Pacific cod with any 
vessel named in a PCTC Program cooperative if the total amount of 
unharvested PCTC Program Pacific cod on a CQ permit currently held by 
that cooperative is zero or less.
    (iv) Operate a vessel fishing under the authority of a CQ permit 
issued to a PCTC Program cooperative and have any Pacific cod aboard 
the vessel unless those fish were harvested under the authority of a 
PCTC Program CQ permit.
    (v) Have a negative balance in a PCTC Program CQ account after the 
end of the calendar year for which a PCTC Program CQ permit was issued.
    (vi) Fail to submit a PCTC Program cost recovery fee payment as 
required under Sec.  679.135.
* * * * *
0
6. Amend Sec.  679.20 by, revising paragraph (a)(7)(viii) and adding 
paragraph (e)(3)(vi) to read as follows:


Sec.  679.20  General limitations.

    (a) * * *
    (7) * * *
    (viii) Aleutian Islands PCTC Program set-aside provisions.--During 
the annual harvest specifications process, the Regional Administrator 
will establish the Aleutian Islands PCTC Program set-aside through the 
process set forth at Sec.  679.132.
* * * * *
    (e) * * *
    (3) * * *
    (vi) For a catcher/processor with a BSAI Pacific cod trawl 
mothership endorsement that receives an unsorted codend delivered by a 
catcher vessel authorized to harvest PCTC Program Pacific cod, the 
maximum retainable amount for each species or species group applies at 
any time for the duration of the fishing trip and must be applied to 
only the PCTC Program hauls during a fishing trip.
* * * * *
0
7. In Sec.  679.21, revise paragraphs (b)(1)(ii)(B) introductory text 
and (B)(5); (b)(2)(iii)(A) and (B); (b)(4)(i)(B); (e)(3)(iv) 
introductory text and (iv)(E); and add paragraph (e)(7)(v) to read as 
follows:


Sec.  679.21  Prohibited species bycatch management.

* * * * *
    (b) * * *
    (1) * * *
    (ii) * * *
    (B) Trawl fishery categories. For purposes of apportioning the 
trawl PSC limit set forth under paragraph (b)(1)(ii)(A)(1) of this 
section among trawl fisheries, the following fishery categories are 
specified and defined in terms of round-weight equivalents of those 
groundfish species or species groups for which a TAC has been specified 
under Sec.  679.20.
* * * * *
    (5) Pacific cod fishery. Fishing with trawl gear during any weekly 
reporting period that results in a retained aggregate amount of Pacific 
cod that is greater than the retained amount of any other groundfish 
fishery category defined under this paragraph (b)(1)(ii)(B). This 
Pacific cod fishery is further apportioned between the PCTC Program, 
the trawl catcher vessel limited access C season, and AFA catcher/
processors as established at Sec.  679.131(c) and (d).
* * * * *
    (2) * * *
    (iii) * * *
    (A) Unused seasonal apportionments. Unused seasonal apportionments 
of trawl fishery PSC allowances made under paragraph (b)(2) of this 
section will be added to its respective fishery PSC allowance for the 
next season during a current fishing year except for the Pacific cod 
fishery apportionment to the PCTC Program, which follows the 
regulations at Sec.  679.131(c) and (d).
    (B) Seasonal apportionment exceeded. If a seasonal apportionment of 
a trawl fishery PSC allowance made under paragraph (b)(2) of this 
section is exceeded, the amount by which the seasonal apportionment is 
exceeded will be deducted from its respective apportionment for the 
next season during a current fishing year except for the Pacific cod 
fishery apportionment to the PCTC Program, which follows the 
regulations at Sec.  679.131(c) and (d).
* * * * *
    (4) * * *
    (i) * * *
    (B) Closures. Except as provided in paragraph (b)(4)(i)(A) of this 
section, if, during the fishing year, the Regional Administrator 
determines that U.S. fishing vessels participating in any of the trawl 
fishery categories listed in paragraphs (b)(1)(ii)(B)(2) through (6) of 
this section will catch the halibut PSC allowance, or seasonal 
apportionment thereof, specified for that fishery category under 
paragraph (b)(1)(i) or (ii) of this section, NMFS will publish in the 
Federal Register the closure of the entire BSAI to directed fishing for 
each species and/or species group in that fishery category for the 
remainder of the year or for the remainder of the season. This does not 
apply to allocations to the PCTC Program specified at Sec.  679.133(b).
* * * * *
    (e) * * *
    (3) * * *
    (iv) Trawl fishery categories. For purposes of apportioning trawl 
PSC limits for crab and herring among fisheries, other than crab PSC CQ 
assigned to an Amendment 80

[[Page 8623]]

cooperative, the following fishery categories are specified and defined 
in terms of round-weight equivalents of those groundfish species or 
species groups for which a TAC has been specified under Sec.  679.20.
* * * * *
    (E) Pacific cod fishery. Fishing with trawl gear during any weekly 
reporting period that results in a retained aggregate amount of Pacific 
cod that is greater than the retained amount of any other groundfish 
fishery category defined under this paragraph (e)(3)(iv). The Pacific 
cod fishery is further apportioned between the PCTC Program, the trawl 
catcher vessel limited access C season, and AFA catcher/processors as 
established at Sec.  679.131(d).
* * * * *
    (7) * * *
    (v) Paragraph (e)(7) of this section does not apply to 
apportionments to the PCTC Program as described in Sec.  679.130.
* * * * *
0
9. Amend Sec.  679.51 by:
0
a. Revising paragraph (a)(2)(i)(C)(4);
0
b. Adding paragraphs (a)(2)(i)(C)(5) and (vi)(G);
0
c. Revising paragraphs (e)(1)(iii)(A) and (B) introductory text; and
0
d. Adding paragraph (e)(1)(iii)(D).
    The revisions and additions read as follows:


Sec.  679.51  Observer and Electronic Monitoring System requirements 
for vessels and plants.

    (a) * * *
    (2) * * *
    (i) * * *
    (C) * * *
    (4) Using trawl gear in the BSAI if the vessel has been placed in 
the full observer coverage category under paragraph (a)(4) of this 
section; or
    (5) Participating in the PCTC Program.
* * * * *
    (vi) * * *
    (G) PCTC Program Motherships. A mothership that receives unsorted 
codends from catcher vessels harvesting Pacific cod under the PCTC 
Program must have at least two observers aboard the mothership, at 
least one of whom must be endorsed as a lead level 2 observer. More 
than two observers must be aboard if the observer workload restriction 
would otherwise preclude sampling as required.
* * * * *
    (e) * * *
    (1) * * *
    (iii) * * *
    (A) Observer use of equipment. Allow an observer to use the 
vessel's communications equipment and personnel, on request, for the 
confidential entry, transmission, and receipt of work-related messages 
(including electronic transmission of data), at no cost to the observer 
or the United States.
    (B) Equipment, software, and data transmission requirements. The 
operator of a catcher/processor (except for a catcher/processor placed 
in the partial observer coverage category under paragraph (a)(3) of 
this section), mothership, catcher vessel 125 ft LOA or longer (except 
for a catcher vessel fishing for groundfish with pot gear), or a 
catcher vessel participating in the PCTC Program (except for paragraph 
(D)) must provide the following equipment, software and data 
transmission capabilities:
* * * * *
    (D) PCTC Program. The operator of a non-AFA catcher vessel 
participating in the PCTC Program is not required to comply with 
paragraph (e)(1)(iii)(B)(3) of this section to provide data 
transmission capability until [Date 3 years after effective date of the 
final rule]. However, once any non-AFA catcher vessel in the PCTC 
Program is capable of at-sea data transmission, the operator must 
comply.
* * * * *


Sec.  679.64  [Amended]

0
10. In Sec.  679.64, remove and reserve paragraphs (b)(3)(ii) and 
(4)(i).
0
11. Add Subpart L, consisting of Sec. Sec.  679.130 through 679.135 to 
read as follows:
Subpart L--Pacific Cod Trawl Cooperative Program
Sec.
679.130 Allocation, use, and transfer of PCTC Program QS permits.
679.131 PCTC Program annual harvester privileges.
679.132 Aleutian Islands set-aside provisions in the PCTC Program.
679.133 PCTC Program use caps and sideboard limits.
679.134 PCTC Program permits, catch monitoring, catch accounting, 
and recordkeeping and reporting.
679.135 PCTC Program cost recovery.

Subpart L--Pacific Cod Trawl Cooperative Program


Sec.  679.130  Allocation, use, and transfer of PCTC Program QS.

    (a) Applicable areas and seasons.
    (1) Applicable fishery. The PCTC Program applies to the Pacific cod 
trawl catcher vessel sector in the BSAI as defined in Sec.  
679.20(a)(7)(ii)(A).
    (2) PCTC Program Fishing Seasons. The following fishing seasons 
apply to fishing under this subpart subject to other provisions of this 
part:
    (i) PCTC Program cooperative A season. Fishing by vessels 
participating in a cooperative is authorized from 1200 hours, A.l.t., 
January 20 through 1200 hours, A.l.t., April 1.
    (ii) PCTC Program cooperative B season. Fishing by vessels 
participating in a cooperative is authorized from 1200 hours, A.l.t., 
April 1 through 1200 hours, A.l.t., June 10.
    (iii) Limited Access C Season. The PCTC Program does not apply to 
the Pacific cod trawl catcher vessel C season, as defined in Sec.  
679.23(e)(5)(ii)(C)(1).
    (b) Pacific cod legal landings. Pacific cod legal landings means 
the retained catch of Pacific cod caught using trawl gear in a 
management area in the BSAI by a catcher vessel during the directed 
fishing season for Pacific cod that:
    (1) Was made in compliance with state and Federal regulations in 
effect at that time; and
    (2) Was recorded on a State of Alaska fish ticket for shoreside 
deliveries or in observer data for mothership deliveries; and
    (3) Was the predominately retained species on the fishing trip; and
    (4) Was authorized by:
    (i) An LLP license and caught in the A or B season of a Federal or 
parallel groundfish fishery during the qualifying years 2009 through 
2019; or
    (ii) An LLP license with a transferable AI endorsement prior to 
receiving an AI endorsement and was caught in a parallel fishery 
between January 20, 2004 and September 13, 2009; and
    (5) Was not made in a CDQ fishery; and
    (6) Was not made in a State of Alaska GHL fishery.
    (c) Eligible PCTC Program harvesters. NMFS will assign Pacific cod 
legal landings to an LLP license only if the qualifying Pacific cod 
legal landings of BSAI trawl catcher vessel Pacific cod were made under 
the authority of a fully transferable LLP license endorsed for BS or AI 
Pacific cod with a trawl gear designation from 2009 through 2019 or 
under the authority of an LLP license endorsed for Pacific cod with a 
trawl gear designation prior to earning a transferable AI endorsement 
from 2004 through September 13, 2009;
    (d) Assigning trawl catcher vessel Pacific cod legal landings to an 
LLP license.
    (1) NMFS will assign Pacific cod legal landings to an LLP license 
in the form of QS only if the holder of the LLP license with those 
landings submits a timely and complete application for

[[Page 8624]]

Pacific cod QS, in paragraph (h) of this section, that is approved by 
NMFS.
    (2) NMFS will assign Pacific cod legal landings to an LLP license 
that meets the requirements of paragraph (b) of this section.
    (3) NMFS will reissue LLP licenses to eligible harvesters that 
specify the number of QS units assigned to their LLP licenses.
    (e) Eligible PCTC Program Processors. NMFS will assign legal 
landings to an eligible PCTC Program processor if the processor 
operates under the authority of a valid FFP or FPP and received 
deliveries of legal landings of Pacific cod from the trawl catcher 
vessel sector from 2009 through 2019. A processor is ineligible to 
receive PCTC Program QS if its FFP or FPP is no longer active as of 
[Date 30 days after the effective date of the final rule].
    (f) Assigning Pacific cod processing history to an eligible 
processor.
    (1) NMFS will assign Pacific cod processing history to a processor 
in the form of QS only if the FFP or FPP holder submits a timely and 
complete application for PCTC Program QS that is approved by NMFS 
pursuant to paragraph (h) of this section.
    (2) NMFS will assign Pacific cod processing history based on legal 
landings delivered to a processor authorized by an FPP or FFP that 
meets the requirements of this section.
    (3) For the initial allocation of QS, qualifying processing history 
is attached to the processor at the time legal landings were received.
    (4) An eligible processor will be issued a PCTC Program QS permit 
that specifies the number of QS units assigned to that processor.
    (g) PCTC Program official record.
    (1) Use of the PCTC Program official record. The PCTC Program 
official record will contain information used by the Regional 
Administrator to determine:
    (i) The amount of Pacific cod legal landings as defined in Sec.  
679.130 assigned to an LLP license;
    (ii) The amount of Pacific cod processing history of legal landings 
as defined in Sec.  679.130 assigned to an FPP or FFP;
    (iii) The amount of PCTC Program QS resulting from Pacific cod 
legal landings assigned to an LLP license held by an eligible 
harvester, or QS resulting from Pacific cod processing history assigned 
to an FPP or FFP held by an eligible processor;
    (iv) The amount of Pacific cod sideboard ratios assigned to LLP 
licenses;
    (v) Eligibility to participate in the PCTC Program; and
    (vi) QS assigned to PCTC Program participants.
    (2) Presumption of correctness. The PCTC Program official record is 
presumed to be correct. An applicant participating in the PCTC Program 
has the burden to prove otherwise.
    (3) Documentation. Only Pacific cod legal landings and processing 
history of legal landings, as described in paragraph (b) of this 
section, shall be used to establish an allocation of PCTC Program QS. 
Evidence of legal landings shall be limited to documentation of state 
or Federal catch reports that indicate the amount of Pacific cod 
harvested, the groundfish reporting area in which it was caught, the 
vessel and gear type used to catch it, and the date of harvesting, 
landing, or reporting.
    (4) Non-severability of Pacific cod legal landings. Pacific cod 
legal landings are non-severable from the LLP license or PCTC Program 
QS Permit to which those Pacific cod legal landings are assigned 
according to the PCTC Program official record except under the 
following provisions:
    (i) If multiple LLP licenses authorized catch by a vessel, in the 
absence of an agreement provided by the LLP license holder at the time 
of application for QS, qualifying catch history will be assigned to an 
LLP license by the owner of the vessel that made the catch at the time 
of application.
    (ii) 90-day transfer provision.
    (A) For the LLP licenses associated with non-exempt AFA catcher 
vessels, within 90 days of initial issuance of QS, the owners of the 
LLP licenses that are associated with AFA non-exempt catcher vessels 
that had engaged in fish transfer agreements during the qualifying 
periods may transfer QS to other LLP licenses associated with AFA non-
exempt vessels, subject to the ownership cap in Sec.  679.133.
    (B) NMFS will execute permanent transfers of QS between eligible 
LLPs during the 90-day transfer provision upon showing that both the 
transferor and transferee agree to the one-time transfer of QS and 
understand the transfer will be permanent, or upon showing a transfer 
is authorized by an operation of law (e.g., a court order). Requests to 
transfer QS must specify which LLP is transferring QS, which LLP is 
receiving QS, and the amount of QS to be transferred.
    (C) After the expiration of the 90-day transfer provision, PCTC QS 
will no longer be severable from the LLP license to which it is 
assigned unless authorized by the transfer rules specified in paragraph 
(f) of this section or modification is supported by an operation of 
law.
    (h) Application for PCTC Program Quota Share--
    (1) Submission of an application for PCTC Program quota share. A 
person who wishes to receive QS to participate in the PCTC Program as 
an eligible harvester or an eligible processor must submit a timely and 
complete application for PCTC Program QS. An application form will be 
provided by NMFS or available from NMFS Alaska Region website as 
defined at Sec.  679.2. The acceptable submittal methods will be 
described on the application form.
    (2) Deadline. A completed application for PCTC Program QS must be 
received by NMFS no later than 1700 hours, A.l.t., on [Date 30 days 
after the effective date of the final rule], or if sent by U.S. mail, 
postmarked by that time. Objective written evidence of timely 
application will be considered proof of a timely application.
    (3) Contents of application. A timely and complete application must 
contain the information specified on the application for PCTC Program 
QS with all required documentation attached.
    (i) Additional required documentation for LLP license holders. 
Vessel names, ADF&G vessel registration numbers, and USCG documentation 
numbers of all vessels that fished under the authority of each LLP 
license, including dates when landings were made under the authority of 
an LLP license from 2009 through 2019 or under the authority of an LLP 
license prior to earning a transferable AI endorsement from 2004-2019;
    (ii) Additional required documentation for processors. Processor 
name, FFP or FPP number, and location of processing plant, including 
dates when landings were made under the authority of an LLP license 
from 2009 through 2019;
    (iii) The applicant must sign and date the application certifying 
under penalty of perjury that all information is true and correct. If 
the application is completed by a designated representative, then 
explicit authorization signed by the applicant must accompany the 
application.
    (4) Application evaluation. The Regional Administrator will 
evaluate applications and compare all claims of catch history or 
processing history in an application with the information in the PCTC 
Program official record. Application claims that are consistent with 
information in the PCTC Program official record will be approved by the 
Regional Administrator. Application claims that are inconsistent with 
the PCTC Program official record will not be approved unless supported 
by documentation sufficient to substantiate

[[Page 8625]]

such claims. An applicant who submits claims of catch history or 
processing history that are inconsistent with the official record 
without sufficient evidence, or an applicant who fails to submit the 
information specified in paragraph (d) of this section, will be 
provided a single 30-day evidentiary period to submit the specified 
information, submit evidence to verify their claims of catch or 
processing history, or submit a revised application consistent with 
information in the PCTC Program official record. An applicant who 
claims catch or processing history that is inconsistent with 
information in the PCTC Program official record has the burden of 
proving that the submitted claims are correct. Any claims that remain 
unsubstantiated after the 30-day evidentiary period will be denied. All 
applicants will be notified of NMFS's final application determinations 
by an initial administrative determination (IAD), which will inform 
applicants of their appeal rights under 15 CFR part 906.
    (5) Appeals. An applicant may appeal an IAD under the provisions in 
15 CFR part 906.
    (i) Assigning PCTC Program QS to Harvesters and Processors. The 
Regional Administrator will assign PCTC Program QS only to an eligible 
harvester or eligible processor who submits a timely application for 
PCTC Program QS that is approved by NMFS.
    (1) Calculation of PCTC Program QS allocation to LLP licenses 
without a transferable AI endorsement. NMFS will assign a specific 
amount of PCTC Program QS units to each LLP license based on the 
Pacific cod legal landings of each LLP license using information from 
the PCTC Program official record according to the following procedures:
    (i) Determine the Pacific cod legal landings for each LLP license 
for each calendar year from 2009 through 2019.
    (ii) Select the 10 calendar years from the qualifying time period 
with the highest amount of legal landings for each LLP license, 
including years with zero metric tons if necessary.
    (iii) Sum the Pacific cod legal landings of the highest 10 years 
for each LLP license. This yields the QS units (in metric tons) for 
each LLP license.
    (2) Calculation of PCTC Program QS allocation to LLP licenses with 
transferable AI endorsements. NMFS will assign a specific amount of 
PCTC Program QS units to each LLP license with a transferable AI 
endorsement based on the Pacific cod legal landings of each using 
information from the PCTC Program official record according to the 
following procedures:
    (i) Determine the Pacific cod legal landings for each LLP license 
with a transferable AI endorsement for each calendar year from 2004 
through 2019.
    (ii) Select the fifteen calendar years that yield the highest 
amount of legal landings for each LLP license, including years with 
zero metric tons if necessary.
    (iii) Sum the Pacific cod legal landings of the highest fifteen 
years for each LLP license with transferable AI endorsement. This 
yields the QS units (in metric tons) for each LLP license with a 
transferable AI endorsement.
    (3) Official Record Date. The initial PCTC Program QS pool for all 
LLP licenses, with and without transferable AI endorsements, is the sum 
of the sum of the QS units assigned to all LLP licenses in metric tons 
based on the PCTC Program official record as of December 31, 2022.
    (4) Calculation of PCTC Program QS allocation to processors. NMFS 
will assign a specific amount of Pacific cod QS units to each eligible 
processor based on the Pacific cod legal landings delivered to each FPP 
or FFP using information from the PCTC Program official record 
according to the following procedures:
    (i) Sum the Pacific cod legal landings delivered to each FPP or FFP 
for each calendar year from 2009 through 2019;
    (ii) Select the ten calendar years that yield the highest amount of 
legal landings delivered to each FPP or FFP, including years with zero 
metric tons if necessary;
    (iii) Sum the Pacific cod legal landings of the highest 10 years 
for each FPP or FFP. This yields the QS units for each eligible 
processor, which will be specified on a PCTC Program Processor Permit 
for that processor;
    (iv) The PCTC Program QS pool for processors is the sum of all QS 
units assigned to processors in metric tons based on the PCTC official 
record as of December 31, 2022.
    (j) Transfer of PCTC Program QS.
    (1) Transfer of an LLP license with PCTC Program QS. A person may 
transfer an LLP license and any PCTC Program QS assigned to that LLP 
license under the provisions in Sec.  679.4(k)(7), provided that the 
LLP license is not assigned PCTC Program QS in excess of the ownership 
cap specified in Sec.  679.133 at the time of transfer.
    (2) Transfer of PCTC Program QS assigned to LLP licenses that 
exceeds PCTC Program QS ownership caps.
    (i) If an LLP license receives an initial allocation of QS that 
exceeds an ownership cap specified in Sec.  679.133(a), upon transfer 
of the LLP license, the LLP license holder may transfer the amount of 
QS in excess of the ownership cap separately from the LLP license and 
assign it to one or more LLP licenses. However, a transfer will not be 
approved by NMFS if that transfer would cause the receiving LLP license 
to exceed an ownership cap specified in Sec.  679.133(a).
    (ii) Prior to the transfer of an LLP license that received an 
initial allocation of QS that exceeds an ownership cap specified in 
Sec.  679.133(a), the LLP license holder must transfer the QS that is 
in excess of the ownership cap separately from that LLP license and 
assign it to one or more LLP licenses. On completion of the transfer of 
QS, the LLP license that was initially allocated an amount of QS in 
excess of the ownership cap may not exceed any ownership cap specified 
in Sec.  679.133(a).
    (iii) Any QS associated with the LLP license that is in excess of 
the ownership cap may be transferred only if an application to transfer 
LLP licenses is approved as specified in Sec.  679.4(k)(7).
    (iv) QS that is transferred from an LLP license that was initially 
allocated an amount of QS in excess of the ownership cap specified in 
Sec.  679.133(a) and assigned to another LLP license may not be severed 
from the receiving LLP license.
    (3) Transfer of processor PCTC Program QS Permits. A person may 
transfer a PCTC Program QS Permit to another processor eligible to hold 
that permit and any QS assigned to that permit provided that the permit 
is not assigned QS in excess of the ownership cap specified in Sec.  
679.133(a) at the time of transfer. PCTC Program QS may be severed from 
a PCTC Program QS permit at the time of transfer if the transfer of the 
PCTC Program QS permit would otherwise result in a transferee exceeding 
an ownership cap. A PCTC Program QS Permit held by a processor and 
associated QS may be transferred only if the application for transfer 
of PCTC Program QS Permit is filled out entirely.
    (4) Transfer of PCTC Program QS assigned to a processor-held PCTC 
Program QS Permit that exceeds PCTC Program ownership caps.
    (i) If a PCTC Program QS Permit receives an initial allocation of 
QS that exceeds an ownership cap specified in Sec.  679.133(a), the 
processor may transfer QS in excess of the ownership cap separately 
from that PCTC Program QS Permit and assign it to the PCTC Program QS 
Permit of one or more eligible processors. However, a transfer may not 
be approved by NMFS if that transfer would cause the receiving 
processor to exceed an ownership cap specified in Sec.  679.133(a).

[[Page 8626]]

    (ii) Prior to the transfer of a PCTC Program QS Permit that 
received an initial allocation of QS that exceeds an ownership cap 
specified in Sec.  679.133(a), the permit holder must transfer the QS 
that is in excess of the ownership cap separately from that PCTC 
Program QS Permit and assign it to one or more PCTC Program QS Permits. 
On completion of the transfer of QS, the PCTC Program QS Permit that 
was initially allocated an amount of QS in excess of the ownership cap 
may not exceed any ownership cap specified in Sec.  679.133(a).
    (iii) Any QS associated with the PCTC Program QS Permit held by a 
processor that is in excess of an ownership cap may be transferred only 
if the application for transfer of PCTC Program QS Permit is filled out 
entirely.


Sec.  679.131  PCTC Program annual harvester privileges.

    (a) Assigning PCTC Program CQ to a PCTC cooperative.
    (1) General. (See also Sec.  679.4(q)).
    (i) Every calendar year, PCTC Program QS assigned to LLP licenses 
and PCTC Program QS Permits held by a PCTC Program processor must be 
assigned to a PCTC cooperative as a CQ permit to use the CQ derived 
from that PCTC QS to catch, process, or receive Pacific cod, crab PSC, 
or halibut PSC assigned to the PCTC Program.
    (ii) NMFS will assign CQ permit to a PCTC Program cooperative based 
on the aggregate QS of all LLP licenses and associated processors 
designated on an application for CQ that is approved by the Regional 
Administrator as described under paragraph (a)(4) of this section.
    (iii) Eligible processors must be associated with a PCTC Program 
cooperative for the QS assigned to that processor's PCTC Program QS 
Permit to be issued to a PCTC Program cooperative as CQ.
    (2) PCTC Program QS issued after issuance of CQ or Pacific cod 
trawl catcher vessel sector TAC. Any PCTC Program QS on an LLP license 
or PCTC Program QS Permit assigned to a PCTC QS holder after NMFS has 
issued CQ for a calendar year, will not result in any additional CQ 
being issued to a PCTC cooperative if that QS holder has assigned their 
QS to a PCTC Program cooperative for that calendar year.
    (3) Failure to designate QS to a PCTC Program cooperative. Failure 
to designate an LLP license with PCTC Program QS or a PCTC Program QS 
Permit on a timely and complete application for CQ that is approved by 
the Regional Administrator as described under paragraph (a)(4) of this 
section, will result in the Regional Administrator not assigning that 
QS to a PCTC Program cooperative for the applicable calendar year.
    (4) Application for PCTC Program CQ. PCTC Program cooperatives must 
submit a complete application by November 1 to receive PCTC Program CQ 
and identify the following:
    (i) PCTC Program cooperative identification, including but not 
limited to the name of the cooperative and the taxpayer identification 
number;
    (ii) PCTC Program QS holders and ownership documentation;
    (iii) PCTC Program cooperative member vessels and LLP licenses;
    (iv) PCTC Program cooperative associated processors;
    (v) Vessels on which the CQ issued to the PCTC Program cooperative 
will be used;
    (vi) Certification of cooperative representative;
    (vii) Attach a copy of the membership agreement or contract that 
includes the following terms:
    (A) How the cooperative intends to catch its PCTC Program CQ;
    (B) The obligations of QS holders who are members of a PCTC Program 
cooperative to ensure the full payment of PCTC Program fee liabilities 
that may be due;
    (C) How cooperatives monitor and report leasing activity into GOA 
fisheries; and
    (D) A cooperative intending to harvest any amount of the CQ set-
aside must provide the cooperative's plan for coordinating harvest and 
delivery of the CQ set-aside with an Aleutian Islands shoreplant as 
defined in Sec.  679.2.
    (viii) Each year, all cooperatives must establish an inter-
cooperative agreement. This inter-cooperative agreement must be 
provided as part of each annual cooperative application and is required 
before NMFS will issue CQ. The inter-cooperative agreement must 
establish how the cooperatives intend to harvest the CQ set-aside in 
years when it applies and ensure harvests in the BS do not exceed the 
minimum set-aside as specified in Sec.  679.132(a)(4)(i).
    (b) Allocations of PCTC Program Pacific cod.
    (1) General. Each calendar year, the Regional Administrator will 
determine the amount of the BSAI trawl catcher vessel sector's Pacific 
cod A and B season allocations that will be assigned to the PCTC 
Program as follows:
    (i) Incidental catch allowance (ICA). For the A and B seasons, the 
Regional Administrator will establish an ICA to account for projected 
incidental catch of Pacific cod by trawl catcher vessels engaged in 
directed fishing for groundfish other than PCTC Program Pacific cod.
    (ii) Directed fishing allowance (DFA). The remaining trawl catcher 
vessel sector's Pacific cod A and B season allocations are established 
as a DFA for the PCTC Program.
    (2) Calculation.
    (i) Determination of Pacific cod trawl catcher vessel TAC allocated 
to the PCTC Program. NMFS will determine the Pacific cod trawl catcher 
vessel TAC in a calendar year in the annual harvest specification 
process in Sec.  679.20.
    (ii) Annual apportionment of Pacific cod trawl catcher vessel TAC. 
The annual apportionment of Pacific cod in the A and B seasons between 
the PCTC Program DFA and the ICA in a given calendar year is 
established in the annual harvest specifications.
    (3) Allocations of Pacific Cod DFA to PCTC Program.
    (i) Harvester Percentage of DFA. NMFS will assign 77.5 percent of 
the PCTC Program DFA to the QS attached to LLP licenses assigned to 
PCTC Program cooperatives. Each LLP license's QS units will correspond 
to a portion of the DFA according to the following equation: (LLP 
license QS units/(sum of all LLP license QS units)) x (.775 x DFA).
    (ii) Processor Percentage of DFA. NMFS will assign 22.5 percent of 
the PCTC Program DFA to the QS attached to PCTC Program QS Permits 
assigned to PCTC Program cooperatives. Each QS Permit's QS units will 
correspond to a portion of the DFA according to the following equation: 
(PCTC Program QS permit QS units/(sum of all PCTC Program QS permit QS 
units)) x (.225 x DFA).
    (4) Allocation of CQ to PCTC Program cooperatives--
    (i) General. Annual CQ will be issued to each cooperative by NMFS 
based on the aggregate QS attached to LLP licenses and PCTC Program QS 
permits that are assigned to the cooperative. NMFS will issue CQ by A 
and B season and cooperatives will ensure the seasonal limits are not 
exceeded. Unused A season CQ may be rolled over to the B season. Annual 
CQ may be harvested from either BS or AI subareas.
    (ii) CQ allocation for PCTC Program. The amount of CQ that is 
assigned to a PCTC Program cooperative is expressed algebraically as 
follows:

CQ derived from QS assigned to LLP holders = [(.775 x DFA) x (Total LLP 
license QS units assigned to that cooperative/sum of all LLP license QS 
units)]

CQ derived from QS assigned to FFP and FPP holders = [(.225 x DFA) x 
(Total PCTC Program Permit QS units assigned to that cooperative/

[[Page 8627]]

sum of all PCTC Program QS permit QS units)]

The total CQ assigned to that cooperative = CQ derived from LLP license 
holders + CQ derived from PCTC Program QS permit holders

    (iii) Issuance of CQ. A and B season trawl catcher vessel Pacific 
cod sector DFAs will be allocated to cooperatives as CQ. Annual CQ for 
each PCTC Cooperative will be issued separately as A and B season CQ.
    (iv) AI set-aside. When in effect, the AI set-aside will be 
established annually as specified further at Sec.  679.132.
    (c) Halibut PSC.
    (1) Halibut PSC limit for the PCTC Program. The overall halibut PSC 
limit for the PCTC Program for each calendar year is specified in the 
harvest specifications pursuant to the procedures specified at Sec.  
679.21(b). That halibut PSC limit is then assigned to cooperatives 
pursuant to paragraph (a)(1)(i) of this section.
    (i) Multiply the halibut PSC limit apportioned to the BSAI trawl 
limited access sector's Pacific cod fishery category by 98 percent, 
which yields the halibut PSC apportioned to the trawl catcher vessel 
sector. The remaining 2 percent is apportioned to the AFA catcher/
processor sector as specified in Sec.  679.21(b)(4).
    (ii) Assign 95 percent of the trawl catcher vessel sector's halibut 
PSC limit to the A and B seasons and 5 percent to the C season.
    (iii) Each year after apportioning halibut PSC to the trawl catcher 
vessel sector for the A and B season, apply one of the following 
reductions to the A and B season trawl catcher vessel halibut PSC limit 
to determine the overall PCTC Program halibut PSC limit:
    (A) In the first year of the PCTC Program, reduce the A and B 
season halibut PSC limit by 12.5 percent.
    (B) In the second year, and each year thereafter, reduce the A and 
B season halibut PSC limit by 25 percent.
    (2) Halibut PSC assigned to each PCTC Program cooperative. For each 
calendar year, the amount of halibut PSC assigned to a cooperative is 
determined by the following procedure and the amount will be specified 
on the CQ permit:
    (i) Divide the amount of PCTC Program CQ units assigned to each 
PCTC Program cooperative by the amount of CQ allocated to all 
cooperatives. This yields the percentage of PCTC Program CQ units held 
by each cooperative.
    (ii) Multiply the overall PCTC Program halibut PSC limit by the 
percentage of the PCTC Program CQ assigned to a cooperative. This 
yields the amount of halibut PSC issued to that cooperative as CQ.
    (3) Use of halibut PSC in the PCTC Program. Halibut PSC limits 
assigned to the PCTC Program may only be used by the members of the 
PCTC Program. A halibut PSC limit is assigned to the CQ permit issued 
to a cooperative for use while harvesting CQ in the BSAI. Any halibut 
PSC used by a cooperative must be deducted from the amount of halibut 
PSC on its CQ permit. A halibut PSC limit on a CQ permit may be used 
only by the members of the cooperative to which it is assigned. Halibut 
PSC limits for cooperatives are not subject to seasonal apportionment 
under Sec.  679.21. Halibut PSC limits are issued to the PCTC Program 
for the duration of the A and B seasons. Halibut PSC limits may be 
reapportioned to the C season.
    (d) Allocations of crab PSC.
    (1) Crab PSC limits for the PCTC Program. The overall crab PSC 
limit for the PCTC Program for each calendar year is specified in the 
harvest specifications pursuant to the procedures specified at Sec.  
679.21(e). That crab PSC limit is then assigned to cooperatives with CQ 
pursuant to paragraph (a)(1)(i) of this section.
    (i) Multiply the crab PSC limit apportioned to the BSAI trawl 
limited access sector's Pacific cod fishery category by 90.6 percent, 
which yields the percentage of crab PSC apportioned to the trawl 
catcher vessel sector. The remaining 9.4 percent goes to the AFA 
catcher/processor sector as specified in Sec.  679.21(b)(4).
    (ii) Assign 95 percent of the trawl catcher vessel sector's crab 
PSC limit to the A and B seasons and 5 percent to the C season.
    (iii) Reduce the A and B season trawl catcher vessel crab PSC limit 
by 35 percent to determine the overall PCTC Program crab PSC limit.
    (2) Crab PSC assigned to each PCTC Program cooperative. For each 
calendar year, the amount of crab PSC limit assigned to a cooperative 
is determined by the following procedure and the amount will be 
specified on the CQ permit:
    (i) Divide the amount of PCTC Program CQ assigned to each PCTC 
Program cooperative by the total CQ assigned to all cooperatives. This 
yields the percentage of PCTC Program CQ held by that cooperative.
    (ii) Multiply the overall PCTC Program crab PSC limit by the 
percentage of the PCTC Program CQ pool assigned to a cooperative. This 
yields the crab PSC limit issued to that cooperative as CQ.
    (3) Use of crab PSC in the PCTC Program. Crab PSC limits assigned 
to the PCTC Program may only be used by the members of the PCTC 
Program. A crab PSC limit is assigned to the CQ permit issued to a PCTC 
Program cooperative for use while harvesting CQ in the BSAI. Any crab 
PSC used by a cooperative must be deducted from the amount of crab PSC 
limit on its CQ permit. A crab PSC limit on a CQ permit may be used 
only by the members of the cooperative to which it is assigned. Crab 
PSC limits for cooperatives are not subject to seasonal apportionment 
under Sec.  679.21. Crab PSC limits are issued to the PCTC Program for 
the duration of the A and B seasons. Crab PSC limits may be 
reapportioned to the C season.
    (e) Transfer of PSC Limits. Halibut and crab PSC limits are 
transferable between cooperatives according to the same rules 
established for CQ at Sec.  679.130(g)(4).
    (f) Non-allocated Groundfish species. The PCTC Program allocations 
are for directed fishing for Pacific cod by trawl catcher vessels. All 
groundfish species not allocated to PCTC Program cooperatives are 
managed to the maximum retainable amounts (MRAs), as described under 
Sec.  679.20(e).
    (g) Rollover of Pacific cod. If, after June 10, the Regional 
Administrator determines that reallocating a portion of the Pacific cod 
ICA or DFA from the PCTC Program to the BSAI trawl limited access 
sector C season is appropriate, the Regional Administrator may do so 
through notification in the Federal Register consistent with 
regulations at Sec.  679.20(a)(7)(iii).
    (h) Rollover of PSC to the C Season. If, after June 10, the 
Regional Administrator determines that reallocating a portion of the 
halibut or crab PSC limits from the PCTC Program to the BSAI trawl 
limited access sector C season is appropriate, the Regional 
Administrator may do so through notification in the Federal Register 
consistent with regulations at Sec.  679.91(f)(4) and (5).
    (i) Process for inter-cooperative transfer of PCTC Program CQ. NMFS 
will process an application on eFish for an online inter-cooperative 
transfer of CQ, including PSC, provided that all information is 
completed by the transferor and transferee, with all applicable fields 
accurately filled in, and all required documentation is provided.
    (j) PCTC Program cooperative--
    (1) General. This section governs the formation and operation of 
PCTC Program cooperatives. The regulations in this section apply only 
to PCTC Program cooperatives that have formed

[[Page 8628]]

for the purpose of applying for and fishing with CQ issued annually by 
NMFS. PCTC Program cooperatives and cooperative members are responsible 
for ensuring the conduct of cooperatives is consistent with any 
relevant state or Federal antitrust laws. Membership in a cooperative 
is voluntary. No person may be required to join a cooperative. Any LLP 
license holder with PCTC Program QS may join a PCTC Program cooperative 
and assign their QS to that cooperative. Members may leave a 
cooperative, but any CQ derived from the QS held by that member will 
remain with that cooperative for the duration of the calendar year.
    (2) Legal and organizational requirements. A PCTC Program 
cooperative must meet the following legal and organizational 
requirements before it is eligible to receive CQ:
    (i) Each PCTC Program cooperative must be formed as a partnership, 
corporation, or other legal business entity that is registered under 
the laws of one of the 50 states or the District of Columbia;
    (ii) Each PCTC Program cooperative must appoint an individual as 
the designated representative to act on the cooperative's behalf and to 
serve as a contact point for NMFS for questions regarding the operation 
of the cooperative. The designated representative may be a member of 
the cooperative, or some other individual designated by the cooperative 
to act on its behalf;
    (iii) Each PCTC Program cooperative must submit a timely and 
complete application for CQ; and
    (iv) Each PCTC Program cooperative must meet the mandatory 
requirements established in paragraph (j)(3) of this section applicable 
to that PCTC Program cooperative.
    (3) Mandatory requirements. The following table describes the 
requirements to form a PCTC Program cooperative:

 
 
 
(i) Who may join or associate with a PCTC Program         Any PCTC Program QS holder named on a timely and
 cooperative?                                              complete application for CQ for that calendar year
                                                           that is approved by NMFS. Individuals who are not QS
                                                           holders may be employed by, or serve as the
                                                           designated representative of, a cooperative, but
                                                           cannot be members of the cooperative. Any processor
                                                           may associate with a cooperative.
(ii) What is the minimum number of LLP licenses required  A minimum of three LLP licenses are needed to form a
 to form a cooperative?                                    cooperative.
(iii) How many unique LLP license holders are required    There is no minimum number of unique LLP license
 to form a cooperative?                                    holders required to form a cooperative.
(iv) Is there a minimum amount of PCTC Program QS units   No.
 that must be assigned to a PCTC Program cooperative?
(v) What is allocated to the PCTC Program cooperatives?   A and B season CQ for Pacific cod, halibut PSC limits,
                                                           and crab PSC limits, based on the total QS units
                                                           assigned to the cooperative by its members.
(vi) Is this CQ an exclusive catch and use privilege?     Yes, the members of the cooperative have an exclusive
                                                           privilege to collectively catch and use this CQ, or a
                                                           cooperative can transfer all or a portion of this CQ
                                                           to another cooperative.
(vii) Is there a period in a calendar year during which   Yes, any cooperative vessel may harvest PCTC CQ during
 PCTC Program cooperative vessels may catch Pacific cod?   the during the A and B seasons specified at Sec.
                                                           679.130(a)(2).
(viii) Can any vessel catch a PCTC Program cooperative's  No, only vessels that are listed on a PCTC Program
 Pacific cod?                                              cooperative's application for CQ may catch Pacific
                                                           cod assigned to that cooperative.
(ix) Can a member of a PCTC Program cooperative transfer  No, only the designated representative of the
 CQ individually without the approval of the other         cooperative, and not individual members, may transfer
 members of the cooperative?                               CQ to another cooperative, and only if that transfer
                                                           is approved by NMFS.
(x) Are GOA sideboard limits assigned to specific         Existing sideboard limits apply to individual vessels
 persons or PCTC Program cooperatives?                     or LLP license holders, not cooperatives.
(xi) Can PCTC Program QS assigned to an LLP license or    QS assigned to an LLP license may be assigned to only
 QS held by processors be assigned to more than one PCTC   one cooperative in a calendar year. Multiple QS
 Program cooperative in a calendar year?                   permits or LLP licenses held by a single person are
                                                           not required to be assigned to the same cooperative.
                                                           A processor may associate with more than one
                                                           cooperative and any QS held by the processor would be
                                                           divided between the associated cooperatives in the
                                                           same proportion as the CQ derived from the LLP
                                                           licenses.
(xii) Which members may catch the PCTC Program            Use of a cooperative's CQ is determined by the
 cooperative's CQ?                                         cooperative contract signed by its members. Any
                                                           violations of this contract by a cooperative member
                                                           may be subject to civil claims by other members of
                                                           the cooperative.
(xiii) Does a PCTC Program cooperative need a membership  Yes, a cooperative must have a membership agreement or
 agreement or contract?                                    contract. A copy of this agreement or contract must
                                                           be submitted to NMFS with the application for CQ. The
                                                           membership agreement or contract must specify: (A)
                                                           How the cooperative intends to catch its CQ; and (B)
                                                           The obligations of QS holders, who are members of a
                                                           cooperative, to ensure the full payment of fee
                                                           liabilities that may be due.
(xiv) What happens if the PCTC Program cooperative        A copy of the amended membership agreement or contract
 membership agreement or contract is modified during the   must be sent to NMFS in accordance with Sec.
 fishing year?                                             679.131.
(xv) What happens if the cooperative exceeds its CQ       A cooperative is not authorized to catch Pacific cod
 amount?                                                   or use halibut or crab PSC limits in excess of the
                                                           amount on its CQ permit. Exceeding a CQ permit is a
                                                           violation of the regulations. Each member of the
                                                           cooperative is jointly and severally liable for any
                                                           violations of the PCTC Program regulations while
                                                           fishing under the authority of a CQ permit. This
                                                           liability extends to any persons who are hired to
                                                           catch or receive Pacific cod assigned to a
                                                           cooperative.
(xvi) Is there a limit on how much CQ a PCTC Program      No, but each QS holder is subject to ownership caps,
 cooperative may hold or use?                              and a vessel may be subject to vessel use caps. See
                                                           Sec.   679.133.
(xvii) Is there a limit on how much Pacific cod a vessel  Yes, generally a vessel may not catch more than 5
 may catch?                                                percent of the Pacific cod assigned to the PCTC
                                                           Program for that calendar year. See Sec.   679.133
                                                           for use cap provisions.

[[Page 8629]]

 
(xviii) Are there any special reporting requirements?     The designated representative of the cooperative may
                                                           submit an annual PCTC Program cooperative report to
                                                           the North Pacific Fishery Management Council.
(xix) Is there a requirement that a PCTC Program          Yes, see Sec.   679.135 for the provisions that apply.
 cooperative pay PCTC Program cost recovery fees?          PCTC Program cooperatives are responsible for paying
                                                           cost recovery fees.
(xx) Is there any restriction on deliveries of PCTC       Sometimes, if the CQ AI set-aside is in effect for the
 Program CQ?                                               fishing year as specified in Sec.   679.132.
                                                           Cooperatives must establish, through an inter-
                                                           cooperative agreement, how 12 percent of the BSAI A
                                                           season CQ will be set aside for delivery to an
                                                           Aleutian Islands shoreplant.
 

    (4) Successors-in-interest. If a member of a PCTC Program 
cooperative dies (in the case of an individual) or dissolves (in the 
case of a business entity), the CQ derived from the QS assigned to the 
cooperative for that year from that person remains under the control of 
the cooperative for the duration of that calendar year as specified in 
the cooperative contract. Each cooperative is free to establish its own 
internal procedures for admitting a successor-in-interest during the 
fishing season due to the death or dissolution of a cooperative member.


Sec.  679.132  Aleutian Islands set-aside provisions in the PCTC 
Program.

    (a) Aleutian Islands set-aside provisions in the PCTC Program.
    (1) Calculation of the Aleutian Islands Pacific cod non-CDQ ICA and 
DFA. Each year, during the annual harvest specifications process set 
forth at Sec.  679.20(c), the Regional Administrator will specify the 
AI Pacific cod non-CDQ ICA and DFA from the AI Pacific cod non-CDQ TAC 
and specify the AI set-aside as follows.
    (2) Aleutian Islands Pacific cod non-CDQ ICA. The AI Pacific cod 
non-CDQ ICA will be deducted from the aggregate portion of Pacific cod 
TAC annually allocated to the non-CDQ sectors identified in Sec.  
679.20(a)(7)(ii)(A).
    (3) Aleutian Islands Pacific cod non-CDQ DFA. The AI Pacific cod 
non-CDQ DFA will be the amount of the AI Pacific cod TAC remaining 
after subtraction of the AI Pacific cod CDQ reserve and the AI Pacific 
cod non-CDQ ICA. The Regional Administrator will specify the AI set-
aside in either of the following ways:
    (i) The AI set-aside is 12 percent of the PCTC Program A season CQ 
and is in effect during the A and B seasons.
    (ii) If the AI non-CDQ TAC is below 12 percent of the BSAI PCTC 
Program A season CQ, then the AI set-aside will be set equal to the AI 
non-CDQ DFA. When the AI set-aside is in effect and set equal to the AI 
non-CDQ DFA, directed fishing for Pacific cod in the AI may only be 
conducted by PCTC Program vessels that deliver their catch of AI 
Pacific cod to an Aleutian Islands shoreplant. After June 10, the 
Regional Administrator may open directed fishing for non-CDQ Pacific 
cod for other sectors.
    (4) Calculation of the Aleutian Islands Set-aside. Each year, 
during the annual harvest specifications process set forth at Sec.  
679.20(c), the Regional Administrator will specify the AI set-aside, 
which will be an amount of Pacific cod equal to the lesser of either 
the AI Pacific cod non-CDQ DFA or 12 percent of the BSAI PCTC Program A 
season CQ.
    (b) Annual notification of intent to process Aleutian Islands 
Pacific cod -
    (1) Submission of notification. The provisions of this section will 
apply if either a representative of the City of Adak or the City of 
Atka submits to the Regional Administrator a timely and complete 
notification of its intent to process PCTC Program Pacific cod during 
the upcoming fishing year.
    (2) Submission method and deadline. The notification of intent to 
process PCTC Program Pacific cod for the upcoming fishing year must be 
submitted in writing to the Regional Administrator by a representative 
of the City of Adak or the City of Atka no later than October 15 of 
each year in order for the provisions of this section to apply during 
the upcoming fishing year. Notifications of intent received later than 
October 15 may not be accepted by the Regional Administrator.
    (3) Contents of notification. A notification of intent to process 
PCTC Program Pacific cod for the upcoming fishing year must contain the 
following information:
    (i) Date of submission,
    (ii) Name of city,
    (iii) Statement of intent to process PCTC Program Pacific cod,
    (iv) Identification of the fishing year during which the city 
intends to process PCTC Program Pacific cod,
    (v) Contact information for the representative of the city, and
    (vi) Documentation of authority to represent the City of Adak or 
the City of Atka.
    (4) NMFS confirmation and notification. On or before November 30, 
the Regional Administrator will notify the representative of the City 
of Adak or the City of Atka, confirming receipt of their official 
notification of intent to process PCTC Program Pacific cod. Then, NMFS 
will announce through notice in the Federal Register whether the AI 
set-aside will be in effect for the upcoming fishing year.
    (5) AI Set-aside Cooperative Provisions. If the representative of 
the City of Adak or the City of Atka submits a timely and complete 
notification of intent to process in accordance of this section, then 
the following provisions will apply for the fishing year following the 
notification:
    (i) The PCTC Program cooperative(s) are required to set-aside an 
amount of CQ calculated by the Regional Administrator pursuant to 
paragraph (a)(4) of this section for delivery to an Aleutian Islands 
shoreplant as defined at Sec.  679.2.
    (ii) All cooperatives must enter into an inter-cooperative 
agreement that describes how the AI set-aside will be administered by 
the cooperatives to ensure that the PCTC Program harvests in the BS do 
not exceed the amount of the set-aside for delivery to an Aleutian 
Islands shoreplant. This inter-cooperative agreement must establish how 
the cooperatives intend to harvest the AI set-aside when it applies. 
This inter-cooperative agreement must be provided as part of the annual 
cooperative application as specified in Sec.  679.131(a)(4) and is 
required before NMFS can issue CQ.
    (iii) The inter-cooperative agreement must establish how 
cooperatives would ensure that trawl catcher vessels less than 60 feet 
LOA assigned to an LLP license with a transferable AI trawl endorsement 
have the opportunity to harvest 10 percent of the AI set-aside for 
delivery to an Aleutian Islands shoreplant.
    (c) PCTC Program A Season Set-Aside Limitations.
    (1) If the Regional Administrator has approved a notification of 
intent to process, vessels authorized under the PCTC Program shall not 
harvest the amount of the AI set-aside in the BS subarea.
    (2) PCTC Program cooperatives may not deliver more than the PCTC A 
season CQ minus the AI set-aside established under Sec.  679.132 to 
processors in the BS subarea when the AI set-aside is in effect.
    (3) If an Aleutian Islands shoreplant is not able to receive 
deliveries of Pacific cod under the PCTC Program, then the

[[Page 8630]]

City of Adak or the City of Atka may withdraw their annual notification 
of intent to process prior to the end of B season.
    (4) As soon as practicable, if the Regional Administrator 
determines that Aleutian Islands shoreplants authorized under the PCTC 
Program will not process the entire AI set-aside, the Regional 
Administrator may remove the delivery requirement for some or all of 
the projected unused AI set-aside to PCTC cooperatives in proportion to 
the amount of CQ that each PCTC cooperative received in the initial 
allocation of CQ for the remainder of the A and B season by inseason 
notification published in the Federal Register.
    (i) If the City of Adak or the City of Atka withdraws its intent to 
process, the Regional Administrator will release the unused AI set-
aside to PCTC cooperatives in proportion to the amount of CQ that each 
PCTC cooperative received in the initial allocation of CQ for that 
calendar year by inseason notification published in the Federal 
Register.
    (ii) Following a withdrawal of an intent to process, the Regional 
Administrator will announce through notice in the Federal Register that 
the AI set-aside will not be in effect for the remainder of the PCTC 
Program fishing year.


Sec.  679.133  PCTC Program use caps and sideboard limits.

    (a) Ownership and use caps. (1) General.
    (i) Ownership caps limit the amount of QS that may be owned by an 
eligible harvester or eligible processor and their affiliates. Use caps 
limit the amount of CQ that may be harvested by a vessel or received 
and processed by a processor.
    (ii) Use caps do not apply to halibut or crab PSC CQ.
    (iii) Ownership and use may not be exceeded unless the entity 
subject to the cap is specifically allowed to exceed a cap according to 
the criteria established under paragraph (a)(6) of this section.
    (iv) All QS ownership caps are a percentage of the initial QS pool 
established by NMFS in Sec.  679.130(e).
    (v) The CQ processing use cap is a percentage of the total amount 
of CQ issued to cooperatives during a calendar year.
    (vi) The vessel use cap is a percentage of the amount of CQ 
assigned to the PCTC Program during a calendar year.
    (2) Harvester ownership cap. A person may not individually or 
collectively own more than 5 percent of the QS initially assigned to 
harvesters unless that person qualifies for an exemption to this 
ownership cap under paragraph (a)(6) of this section based on their 
qualifying catch history. Processor-issued QS does not count toward 
this ownership cap.
    (3) Vessel use cap. A catcher vessel may not harvest an amount of 
CQ greater than 5 percent of the CQ issued to the PCTC Program during a 
calendar year unless that vessel qualifies for an exemption to this use 
cap under paragraph (a)(6) of this section based on their qualifying 
catch history.
    (4) Processor ownership cap. A person may not individually or 
collectively own more than 20 percent of the QS initially assigned to 
processors unless that person qualifies for an exemption to this 
ownership cap under paragraph (a)(6) of this section based on their 
qualifying processing history.
    (5) Processing use cap. A processor, at the firm or company level, 
may not process more than 20 percent of the CQ assigned to the PCTC 
Program during a calendar year unless that processor qualifies for an 
exemption to this use cap under paragraph (a)(6) of this section based 
on their qualifying processing history. The amount of CQ that is 
received by a PCTC Program processor is calculated based on the sum of 
all landings made with CQ received or processed by that processor and 
the CQ received or processed by any person affiliated with that 
processor as that term is defined in Sec.  679.2.
    (6) Ownership exemptions.
    (i) Harvester ownership cap exemption. A person may receive an 
initial allocation of Pacific cod QS in excess of the harvester 
ownership cap. This exemption is non-transferrable.
    (ii) Processor ownership cap exemption. A person may receive an 
initial allocation of Pacific cod QS in excess of the processor 
ownership cap. This exemption is non-transferrable.
    (iii) Vessel use cap exemption. A vessel designated on an LLP that 
received an initial allocation of Pacific cod QS in excess of the 
harvester ownership cap may harvest CQ in excess of the vessel use cap 
up to an amount of CQ proportional to the amount of CQ resulting from 
QS assigned to the LLP. This exemption is non-transferrable.
    (iv) Processor use cap exemption. A processor that received an 
initial allocation of Pacific cod QS in excess of the processor 
ownership cap may process more than 20 percent of PCTC Program CQ 
during a calendar year up to an amount of CQ proportional to the ratio 
of QS held by the processor over the total amount of QS held by 
processors. This exemption is non-transferrable.
    (7) Transfer limitations. An eligible harvester that receives an 
initial allocation of Pacific cod QS that exceeds the ownership cap 
listed in paragraph (a)(2) of this section shall not receive any 
Pacific cod QS by transfer unless and until the eligible harvester's 
holdings of Pacific cod QS in the PCTC Program are reduced to an amount 
below the use cap specified in paragraph (a) of this section.
    (b) Sideboard limits--General. The regulations in this section 
restrict the holders of LLP licenses issued PCTC Program QS from using 
the increased flexibility provided by the PCTC Program to expand their 
level of participation in GOA groundfish fisheries.
    (1) Sideboard limit restrictions for LLP licenses authorizing AFA 
non-exempt catcher vessels. LLP licenses that authorize AFA non-exempt 
catcher vessels will be subject to the sideboard limitations specified 
at Sec.  679.64(b)(4)(i).
    (2) At-Sea Processing Sideboard Limit. A sideboard limit will be 
specified on each LLP license with a BSAI Pacific cod trawl mothership 
endorsement. Each LLP license with a BSAI Pacific cod trawl mothership 
endorsement may receive PCTC Program CQ deliveries from a catcher 
vessel not to exceed 125 percent of a catcher/processor's processing 
history as defined in Sec.  679.130 or 125 percent of the catch history 
from LLP licenses that are owned (in excess of 75 percent) directly or 
indirectly by the owner of a catcher/processor eligible for the PCTC 
Program, up to 125 percent of their processing history.


Sec.  679.134  PCTC Program permits, catch monitoring, catch 
accounting, and recordkeeping and reporting.

    (a) Permits. For permit information, please see Sec.  679.4(q).
    (b) Catch monitoring requirements for PCTC Program catcher vessels. 
The owner or operator of a catcher vessel must ensure the vessel 
complies with the observer coverage requirements described in Sec.  
679.51(a)(2) at all times the vessel is participating in a cooperative.
    (c) Catch monitoring requirements for motherships receiving 
unsorted codends from a PCTC Program catcher vessel. (1) Catch 
weighing. All catch, except halibut sorted on deck by vessels 
participating in the halibut deck sorting described at Sec.  679.120, 
must be weighed on a NMFS-approved scale in compliance with the scale 
requirements at Sec.  679.28(b). Each haul must be weighed separately 
and all catch must be made available for sampling by an observer.

[[Page 8631]]

    (2) Additional catch monitoring requirements. Comply with catch 
monitoring requirements specified atSec.  679.93(c).
    (d) Catch monitoring requirements for shoreside processors. All 
groundfish landed by catcher vessels described in Sec.  679.51(a)(2) 
must be sorted, weighed on a scale approved by the State of Alaska as 
described in Sec.  679.28(c), and be made available for sampling by an 
observer, NMFS staff, or any individual authorized by NMFS. Any of 
these persons must be allowed to test any scale used to weigh 
groundfish to determine its accuracy.
    (e) Catch accounting. (1) Pacific cod. All Pacific cod harvests by 
a vessel that is named on an LLP license assigned to a PCTC Program 
cooperative and fishing under a CQ permit will be debited against the 
CQ for that cooperative during the PCTC Program fishing seasons as 
defined in Sec.  679.130(a)(2).
    (2) PCTC Program halibut and crab PSC. All halibut and crab PSC in 
the PCTC Program used by a vessel that is named on an LLP license 
assigned to a cooperative and fishing under a CQ permit will be debited 
against the CQ for that cooperative during the PCTC Program fishing 
seasons as defined in Sec.  679.130(a)(2).
    (3) Groundfish sideboard limits. All groundfish harvests in the 
BSAI and GOA that are subject to a sideboard limit for that groundfish 
species as described under Sec.  679.133(c), except groundfish 
harvested by a vessel when participating in the Central GOA Rockfish 
Program, will be debited against the applicable sideboard limit.
    (f) Recordkeeping and reporting. The owners and operators of 
catcher vessels and processors authorized as participants in the PCTC 
Program must comply with the applicable recordkeeping and reporting 
requirements of this section and must assign all catch to a PCTC 
Program cooperative as applicable at the time of catch or receipt of 
Pacific cod. All owners of catcher vessels and processors authorized as 
participants in the PCTC Program must ensure that their designated 
representatives or employees comply with all applicable recordkeeping 
and reporting requirements.
    (1) Logbook.
    (i) DFL. Operators of catcher vessels participating in the PCTC 
Program fishery must maintain a daily fishing logbook for trawl gear as 
described in Sec.  679.5.
    (ii) ELB. Operators of a catcher/processor designated on an LLP 
license with a BSAI Pacific cod trawl mothership endorsement must use a 
combination of NMFS-approved catcher/processor trawl gear ELB and 
eLandings to record and report groundfish and PSC information as 
described in Sec.  679.5 to record PCTC Program landings and 
production.
    (2) eLandings. Managers of shoreside processors that receive 
Pacific cod in the PCTC Program must use eLandings or NMFS-approved 
software as described in Sec.  679.5(e) to record PCTC Program landings 
and production.
    (3) Production reports. Operators of a catcher/processor designated 
on an LLP license with a BSAI Pacific cod trawl mothership endorsement 
that receives and purchases landings of PCTC CQ must submit a 
production report as described in Sec.  679.5(e)(10).
    (4) Product transfer report (PTR), processors. Operators of a 
catcher/processor designated on an LLP license with a BSAI Pacific cod 
trawl mothership endorsement and managers of shoreside processors that 
receive and purchase landings of PCTC Program CQ must submit a PTR as 
described in Sec.  679.5(g).
    (5) Vessel monitoring system (VMS) requirements. Operators of 
catcher vessels assigned to a PCTC cooperative or that are subject to 
sideboard limits detailed in Sec.  679.134 must use functioning VMS 
equipment as described at Sec.  679.28(f) at all times when operating 
in a reporting area off Alaska during the A and B season.
    (6) PCTC Program cost recovery fee submission (See Sec.  679.135).
    (7) Pacific cod Ex-vessel Volume and Value Report. A processor that 
receives and purchases landings of PCTC CQ must submit annually to NMFS 
a complete Pacific cod Ex-vessel Volume and Value Report, as described 
in Sec.  679.5(u) for each reporting period for which the PCTC 
processor receives PCTC CQ.


Sec.  679.135  PCTC Program cost recovery.

    (a) Cost recovery fees.
    (1) Responsibility. Each PCTC Program cooperative must comply with 
the requirements of this section.
    (i) Subsequent transfer of CQ or QS held by PCTC cooperative 
members does not affect the cooperative's liability for noncompliance 
with this section.
    (ii) Non-renewal of a CQ permit does not affect the cooperative's 
liability for noncompliance with this section.
    (iii) Changes in the membership in a PCTC cooperative, such as 
members joining or departing during the relevant year, or changes in 
the amount of QS holdings of those members does not affect the 
cooperative's liability for noncompliance with this section.
    (2) Fee collection. PCTC Program cooperatives that receive CQ are 
responsible for submitting the cost recovery payment for all CQ 
landings made under the authority of their CQ permit.
    (3) Payment.
    (i) Payment due date. A cooperative representative must submit any 
cost recovery fee liability payment(s) no later than August 31 
following the calendar year in which the CQ landings were made.
    (ii) Payment recipient. Make electronic payment payable to NMFS.
    (iii) Payment address. Submit payment and related documents as 
instructed on the NMFS Alaska Region website as defined at Sec.  679.2.
    (iv) Payment method. Payment must be made electronically in U.S. 
dollars using an approved payment method available on the payment 
website.
    (b) Pacific cod standard ex-vessel value determination and use. 
NMFS will use the standard prices calculated for Pacific cod based on 
information provided in the Pacific Cod Ex-vessel Volume and Value 
Report described at Sec.  679.5(u)(1) from the previous calendar year.
    (c) PCTC Program fee percentage.
    (1) Established percentage. The fee percentage is the amount as 
determined by the factors and methodology described in paragraph (c)(2) 
of this section. This amount will be announced by publication in the 
Federal Register. This amount must not exceed 3.0 percent of the gross 
ex-vessel value pursuant to 16 U.S.C. 1854(d)(2)(B).
    (2) Calculating fee percentage value. Each year NMFS shall 
calculate and publish the fee percentage according to the following 
factors and methodology:
    (i) Factors. NMFS must use the following factors to determine the 
fee percentage:
    (A) The catch to which the PCTC Program cost recovery fee will 
apply;
    (B) The ex-vessel value of that catch; and
    (C) The costs directly related to the management, data collection, 
and enforcement of the PCTC Program.
    (ii) Methodology. NMFS must use the following equations to 
determine the fee percentage:

100 x DPC/V

where:
DPC = the direct program costs for the PCTC Program for the previous 
calendar year with any adjustments to the account from payments 
received in the previous year.
V = total of the standard ex-vessel value of the catch subject to 
the PCTC cost recovery fee liability for the current year.

    (3) Publication.

[[Page 8632]]

    (i) General. Following the fishing season in which the PCTC CQ 
landings were made, NMFS shall calculate the fee percentage based on 
the calculations described in paragraph (c)(2) of this section.
    (ii) Effective period. The calculated fee percentage is applied to 
PCTC CQ landings made in the previous calendar year.
    (4) Applicable percentage. The CQ permit holder must use the fee 
percentage applicable at the time a PCTC landing is debited from a CQ 
allocation to calculate the cost recovery fee liability for any 
retroactive payments for CQ landed.
    (5) Fee liability determination for a cooperative.
    (i) All cooperatives are subject to a fee liability for any CQ 
debited from a CQ allocation during a calendar year.
    (ii) The Pacific cod fee liability assessed to a cooperative is 
based on the proportion of the standard ex-vessel value of Pacific cod 
debited from a CQ holder relative to all cooperatives during a calendar 
year as determined by NMFS.
    (iii) NMFS will provide a fee liability summary letter to all 
cooperative representatives by no later than August 1 of each year. The 
summary will explain the fee liability determination including the 
current fee percentage, details of CQ pounds debited from CQ 
allocations by permit, species, date, and prices.
    (d) Underpayment of fee liability.
    (1) Pursuant to Sec.  679.131, no cooperative will receive any CQ 
unless that cooperative has made full payment of cost recovery 
liability at the time it applies for CQ.
    (2) If a cooperative representative fails to submit full payment 
for PCTC Program cost recovery fee liability by the date described in 
paragraph (a)(3) of this section:
    (i) At any time thereafter the Regional Administrator may send an 
IAD to the cooperative stating the amount of the cooperative's 
estimated fee liability that is past due and requesting payment. If 
payment is not received by the 30th day after the date on the IAD, the 
agency may pursue collection of the unpaid fees.
    (ii) The Regional Administrator may disapprove any application to 
transfer CQ to or from the cooperative in accordance with Sec.  
679.130.
    (iii) No CQ permit will be issued to that cooperative for that 
following calendar year and the Regional Administrator may continue to 
prohibit issuance of a CQ permit for any subsequent calendar years 
until NMFS receives the unpaid fees.
    (iv) No CQ will be issued based on the QS held by the members of 
that cooperative to any other CQ permit for that following calendar 
year.
    (e) Over payment. Payment submitted to NMFS in excess of the annual 
PCTC Program cost recovery fee liability for a cooperative will be 
credited against the CQ permit holder's future cost recovery fee 
liability unless the CQ permit holder requests the agency refund the 
over payment. Payment processing fees may be deducted from any fees 
returned to the CQ permit holder.
    (f) Appeals. A cooperative who receives an IAD for incomplete 
payment of a fee liability may appeal the IAD pursuant to 15 CFR part 
906.
    (g) Annual report. Each year, NMFS will publish a report describing 
the PCTC Program cost recovery fee program.
0
12. Revise Table 40 to Part 679-- BSAI Halibut PSC Sideboard Limits for 
AFA Catcher/Processors and AFA Catcher Vessels, to read as follows:

   Table 40 to Part 679--BSAI Halibut PSC Sideboard Limits for AFA Catcher/Processors and AFA Catcher Vessels
----------------------------------------------------------------------------------------------------------------
     In the following target species       The AFA catcher/processor halibut    The AFA catcher vessel halibut
      categories as defined in Sec.       PSC sideboard limit in metric tons  PSC sideboard limit in metric tons
 679.21(b)(1)(iii) and (e)(3)(iv) . . .                 is . . .                            is . . .
----------------------------------------------------------------------------------------------------------------
All target species categories...........                                 286                                 N/A
Pacific cod trawl.......................                                 N/A                                 N/A
Pacific cod hook-and-line or pot........                                 N/A                                   2
Yellowfin sole..........................                                 N/A                                 101
Rock sole/flathead sole/``other                                          N/A                                 228
 flatfish'' \1\.........................
Turbot/Arrowtooth/Sablefish.............                                 N/A                                   0
Rockfish \2\............................                                 N/A                                   2
Pollock/Atka mackerel/``other species''.                                 N/A                                   5
----------------------------------------------------------------------------------------------------------------

0
13. Revise Table 56 to Part 679--GOA Species and Species Groups for 
Which Directed Fishing for Sideboard Limits by Non-Exempt AFA Catcher 
Vessels is Prohibited, to read as follows:

  Table 56 to Part 679--GOA Species and Species Groups for Which Directed Fishing for Sideboard Limits by Non-
                                    Exempt AFA Catcher Vessels is Prohibited
----------------------------------------------------------------------------------------------------------------
                                                 Management or regulatory area and  processing component  (if
          Species or species group                                       applicable)
----------------------------------------------------------------------------------------------------------------
Pollock....................................  Southeast Outside District, Eastern GOA.
Pacific cod................................  Eastern GOA, inshore component.
                                             Eastern GOA, offshore component.
Sablefish..................................  Western GOA.
                                             Central GOA.
                                             Eastern GOA.
Shallow-water flatfish.....................  Western GOA.
                                             Eastern GOA.
Deep-water flatfish........................  Western GOA.
                                             Central GOA.

[[Page 8633]]

 
                                             Eastern GOA.
Rex sole...................................  Western GOA.
                                             Eastern GOA.
Arrowtooth flounder........................  Western GOA.
                                             Eastern GOA.
Flathead sole..............................  Western GOA.
                                             Eastern GOA.
Pacific ocean perch........................  Western GOA.
                                             Eastern GOA.
Northern rockfish..........................  Western GOA.
Shortraker rockfish........................  Western GOA.
                                             Central GOA.
                                             Eastern GOA.
Dusky rockfish.............................  Western GOA.
                                             Central GOA.
                                             Eastern GOA.
Rougheye rockfish..........................  Western GOA.
                                             Central GOA.
                                             Eastern GOA.
Demersal shelf rockfish....................  Southeast Outside District.
Thornyhead rockfish........................  Western GOA.
                                             Central GOA.
                                             Eastern GOA.
Other rockfish.............................  Central GOA.
                                             Eastern GOA.
Atka mackerel..............................  GOA.
Big skates.................................  Western GOA.
                                             Central GOA.
                                             Eastern GOA.
Longnose skates............................  Western GOA.
                                             Central GOA.
                                             Eastern GOA.
Other skates...............................  GOA.
Sculpins...................................  GOA.
Sharks.....................................  GOA.
Octopuses..................................  GOA.
----------------------------------------------------------------------------------------------------------------


[FR Doc. 2023-01333 Filed 2-8-23; 8:45 am]
BILLING CODE 3510-22-P