[Federal Register Volume 88, Number 50 (Wednesday, March 15, 2023)]
[Proposed Rules]
[Pages 15944-15951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05283]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 230309-0071; RTID 0648-XC579]


Magnuson-Stevens Act Provisions; Fisheries of the Northeastern 
United States; Northeast Multispecies Fishery; Approval of 2023 and 
2024 Sector Operations Plans and Allocation of 2023 Northeast 
Multispecies Annual Catch Entitlements

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

ACTION: Proposed rule; request for comments.

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SUMMARY: We propose to approve sector operations plans and contracts, 
grant regulatory exemptions for fishing years 2023 and 2024, and 
propose Northeast multispecies allocations of annual catch entitlements 
to approved groundfish sectors for fishing year 2023. Approval of 
sector operations plans and contracts is necessary for sectors to 
operate and receive allocations of annual catch entitlements. This 
action is intended to allow limited access permit holders to continue 
to operate or form sectors, as authorized under the Northeast 
Multispecies Fishery Management Plan, and to exempt sectors from 
certain effort control regulations to improve the efficiency and 
economics of sector vessels.

DATES: Comments must be received on or before March 30, 2023.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2023-0009 by the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov 
and enter NOAA-NMFS-2023-0009 in the Search box. Click on the 
``Comment'' icon, complete the required fields, and enter or attach 
your comments.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous).
    Copies of each sector's operations plan and contract from fishing 
years 2021-2022; the Sector Operations Plan Guide for Fishing Years 
2023-2024, which includes NMFS recommended changes for final sector 
operations plans for fishing years 2023-2024, as well as the 
programmatic environmental assessment for sectors operations in fishing 
years 2015 to 2020; and other supporting documents are available from 
the NMFS Greater Atlantic Regional Fisheries Office (GARFO): Contact 
Samantha Tolken at [email protected]. These documents are also 
accessible via the Federal eRulemaking Portal: http://www.regulations.gov.
    To review Federal Register documents referenced in this rule, you 
can visit: https://www.fisheries.noaa.gov/management-plan/northeast-multispecies-management-plan.

FOR FURTHER INFORMATION CONTACT: Samantha Tolken, Fishery Management 
Specialist, (978) 675-2176.

SUPPLEMENTARY INFORMATION:

Background

    The Northeast Multispecies Fishery Management Plan (FMP) defines a 
sector as ``a group of persons holding limited access Northeast 
multispecies permits who have voluntarily entered into a contract and 
agree to certain fishing restrictions for a specified period of time, 
and which has been granted a TAC(s) [sic] in order to achieve 
objectives consistent with applicable FMP goals and objectives.'' A 
sector must be comprised of at least three Northeast multispecies 
permits issued to at least three different persons, none

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of whom have any common ownership interest in the permits, vessels, or 
businesses associated with the permits issued to the other two or more 
persons in that sector. As long as at least three persons issued a 
Northeast multispecies permit meet these requirements, permit owners 
may have common ownership interests in other permits, vessels, or 
businesses associated with such permits. Sectors are self-selecting, 
meaning participation is voluntary, and each sector can choose its 
members.
    The Northeast multispecies sector management system annually 
allocates a portion of the Northeast multispecies stocks to each 
approved sector. These annual sector allocations are known as annual 
catch entitlements (ACE) and are based on the collective fishing 
history of a sector's members. Sectors may receive allocations of 
large-mesh Northeast multispecies stocks with the exception of Atlantic 
halibut, windowpane flounder, Atlantic wolffish, and ocean pout, which 
are non-allocated species managed under separate effort controls. ACEs 
are portions of a stock's annual catch limit (ACL) available to 
commercial Northeast multispecies vessels. A sector determines how to 
harvest its ACE.
    Because sectors elect to receive an allocation under a quota-based 
system, the FMP grants sector vessels several universal exemptions from 
the FMP's effort controls. These universal exemptions apply to: Trip 
limits on allocated stocks; portions of the Gulf of Maine (GOM) Cod 
Protection Closures; Northeast multispecies days-at-sea (DAS) 
restrictions; the requirement to use a 6.5-inch (16.5-cm) mesh codend 
when fishing with selective gear on Georges Bank (GB); and the minimum 
codend mesh size restrictions for trawl gear when fishing in compliance 
with the provisions of the Redfish Exemption Program. The FMP allows 
the Council to add universal exemptions using the framework adjustment 
procedure. Sectors may request additional exemptions annually as part 
of their sector operations plans to increase flexibility and fishing 
opportunities. Sectors are prohibited from requesting exemptions from 
permitting restrictions, gear restrictions designed to minimize habitat 
impacts, and most reporting requirements.
    In addition to the sectors, there are several state-operated permit 
banks that each receive an allocation based on the fishing history of 
permits they hold. The final rule implementing Amendment 17 to the FMP 
(77 FR 16942; March 23, 2012) allowed a state-operated permit bank to 
receive an allocation without needing to comply with sector 
administrative and procedural requirements. Instead, permit banks are 
required to submit a list of permits to NMFS, as specified in the 
permit bank's Memorandum of Agreement between NMFS and the state. These 
permits are not assigned to active vessels; instead, the allocations 
associated with the permits may be leased to vessels enrolled in 
sectors. State-operated permit banks contribute to the total allocation 
under the sector system.
    We previously approved 16 sectors to operate in fishing years 2021 
and 2022, and also approved 18 requested exemptions for sectors (87 FR 
24875; April 27, 2022). Copies of the operations plans and contracts 
from fishing years 2021-2022, the Sector Operations Plan Guide for 
Fishing Years 2023-2024, which includes NMFS recommended changes for 
final sector operations plans for fishing years 2023-2024, the 
environmental assessment (EA), and other supporting documents are 
available at: https://www.fisheries.noaa.gov/species/northeast-multispecies and from NMFS (see ADDRESSES). This action proposes to 
approve sector operations plans and contracts, and grant regulatory 
exemptions for fishing years 2023 and 2024. This action also proposes 
2023 allocations to the proposed approved sectors based on the 
specifications proposed by the New England Fishery Management Council 
in Framework Adjustment 65 to the FMP. NMFS will consider Framework 
Adjustment 65 in a separate rulemaking.

Operations Plan Submissions and Changes

    Annually, we solicit operations plan submissions for consideration 
for approval. Twenty-two groundfish sectors are approved to receive 
catch allocations, 16 of which submitted operations plans and were 
approved to operate, received allocations, and were active in fishing 
year 2022. Two approved sectors did not submit operations plans in 
fishing year 2022. Additionally, four states are approved to operate 
permit banks and two, New Hampshire and Maine, did so in fishing year 
2022. We received 16 sector operations plans for approval for fishing 
years 2023 and 2024, all of which were approved in previous fishing 
years. We did not receive any new operations plans for approval for 
fishing year 2023. As a result, we are not proposing to approve any 
additional sectors to operate in fishing year 2023 beyond those 
previously approved.
    Although no new operations plans were submitted, we did receive 
several requests to modify existing sector operations plans that we 
propose to approve. Sectors may request changes to operations plans as 
needed to implement changes to their operations. Several sectors have 
requested changes related to at-sea monitoring (ASM) and electronic 
monitoring (EM), including adding revised NMFS-recommended language for 
the ASM, audit model EM, and maximized retention EM programs to their 
existing operations plans. Several sectors have requested changes to 
the list of previously-approved sector exemptions by removing their 
sector-specific Redfish exemption, which is now an approved universal 
sector exemption under Framework Adjustment 61 to the Northeast 
Multispecies FMP. We propose to approve these changes to existing 
sector operations plans for fishing years 2023 and 2024. We are 
publishing the fishing year 2021-2022 operations plans for review with 
this action, because final operations plans for fishing year 2023-2024 
have not yet been submitted. The sectors' initial operations plans for 
fishing year 2023- 2024 request updates to NMFS-recommended language 
and minor administrative modifications. Due to the timing of sector 
operations plans submissions, they do not contain NMFS-recommended 
language for changes implemented in Northeast Multispecies FMP 
Amendment 23, however, these changes are expected to be made prior to 
any approval in a final rule. We are making the Sector Operations Plan 
Guide for Fishing Years 2023-2024 (2023-2024 Guide) available to the 
public as a supplemental document for review with this action. The 
2023-2024 Guide includes the NMFS-recommended language for inclusion in 
the final operations plans. The changes in the recommended language 
comport with Amendment 23 requirements. The initial fishing years 2023-
2024 operations plans submitted by sectors do not request substantial 
changes from fishing years 2021-2022 final operations plans.

Sector Allocations for Fishing Year 2023

    This rule proposes 2023 ACE allocations to all sectors based on 
their 2022 sector rosters and the Council-recommended 2023 ACL for each 
stock in Framework Adjustment 65 to the Northeast Multispecies FMP. 
Framework Adjustment 65 is subject to Regional Administrator review and 
public comment separate from this rulemaking. If approved, NMFS expects 
to implement Framework Adjustment 65 and the 2023 ACLs early in the 
2023 fishing year. If Framework Adjustment 65 is not implemented by May 
1, 2023, we would allocate ACE based on default

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specifications and catch limits set by Framework Adjustments 61 and 63.
    Sectors have not yet submitted 2023 sector rosters. Therefore, the 
2022 sector rosters are the best available information to provide 
industry with ACE allocation estimates at this time. For fishing year 
2023, the deadline for sectors to submit preliminary sector rosters for 
fishing year 2023 is three weeks after NMFS's announcement of the ASM 
coverage target, which we expect to announce sometime in March. Sectors 
may set a more restrictive enrollment deadline for their members. NMFS 
will use preliminary 2023 roster submissions to establish rosters and 
allocations in the final rule for this action. Any changes in sector 
rosters will be reflected in ACE allocations in the final rule. Roster 
changes may result in significant changes in sector allocations, but we 
note that significant changes have not typically occurred from year to 
year. Rosters published in the final rule may still not reflect the 
final ACE allocation for fishing year 2023 because all permits enrolled 
in a sector, and the vessels associated with those permits, have until 
April 30, 2023, to withdraw from a sector and fish in the common pool 
for fishing year 2023. Any changes to sector rosters after the final 
rule has published are expected to be minor and are not expected to 
lead to substantial changes in allocations.
    We calculate the sector's allocation for each stock by summing its 
members' potential sector contributions (PSC) for a stock and then 
multiplying that total percentage by the available commercial sub-ACL 
for that stock. Table 1 shows the preliminary projected total PSC for 
each sector, by stock, for fishing year 2023. Tables 2 and 3 show 
estimates of the preliminary allocations that each sector will be 
allocated, in pounds and metric tons, respectively, for fishing year 
2023, based on their fishing year 2022 rosters. We provide the final 
allocations, to the nearest pound, to each sector based on their final 
May 1 rosters. We use these final allocations, along with later 
adjustments including ACE transfers, reductions for overages, or 
increases for carryover, to monitor sector catch. The common pool sub-
ACLs are also included in each of these tables. The common pool sub-
ACLs are managed separately from sectors and do not contribute to 
available ACE for leasing or harvest by sector vessels.
    We do not assign a permit separate PSCs for the Eastern GB cod or 
Eastern GB haddock; instead, we assign each permit a PSC for the GB cod 
stock and GB haddock stock. Each sector's GB cod and GB haddock 
allocations are then divided into an Eastern ACE and a Western ACE, 
based on each sector's percentage of the GB cod and GB haddock ACLs. 
For example, if a sector is allocated 4 percent of the GB cod ACL, the 
sector is allocated 4 percent of the commercial Eastern U.S./Canada 
Area GB cod total allowable catch (TAC) as its Eastern GB cod. The 
Eastern GB haddock allocations are determined in the same way. These 
amounts are then subtracted from the sector's overall GB cod and 
haddock allocations to determine its Western GB cod and haddock ACEs. A 
sector may only harvest its Eastern GB cod and haddock ACEs in the 
Eastern U.S./Canada Area. A sector may also ``convert,'' or transfer, 
its Eastern GB cod or haddock allocation into Western GB allocation and 
fish that converted ACE outside the Eastern GB area.
    We expect to finalize 2022 catch information for sectors in summer 
2023. If there are fishing year 2022 overages, we will allow sectors to 
trade fishing year 2022 ACE for 2 weeks upon our completion of year-end 
catch accounting to reduce or eliminate any fishing year 2022 overages. 
If necessary, we will reduce any sector's fishing year 2023 allocation 
to account for a remaining overage in fishing year 2022. Each year we 
notify the Council and sector managers of this deadline and announce 
this decision on our website at: https://www.fisheries.noaa.gov/species/northeast-multispecies.
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Exemptions Previously Granted for Fishing Years 2021 and 2022

Previously Granted Exemptions for Fishing Years 2021 and 2022 (1-18)

    We propose to grant exemptions from the following requirements for 
fishing years 2023 and 2024, all of which have been requested and 
granted in previous years: (1) 120-day block out of the fishery 
required for Day gillnet vessels; (2) 20-day spawning block out of the 
fishery required for all vessels; (3) limits on the number of gillnets 
for Day gillnet vessels outside the GOM; (4) prohibition on a vessel 
hauling another vessel's gillnet gear; (5) limits on the number of 
gillnets that may be hauled on GB when fishing under a Northeast 
multispecies/monkfish DAS; (6) limits on the number of hooks that may 
be fished; (7) DAS Leasing Program length and horsepower restrictions; 
(8) prohibition on discarding; (9) gear requirements in the Eastern 
U.S./Canada Management Area; (10) prohibition on a vessel hauling 
another vessel's hook gear; (11) the requirement to declare an intent 
to fish in the Eastern U.S./Canada Special Access Program (SAP) and the 
Closed Area (CA) II Yellowtail Flounder/Haddock SAP prior to leaving 
the dock; (12) seasonal restrictions for the Eastern U.S./Canada 
Haddock SAP; (13) seasonal restrictions for the CA II Yellowtail 
Flounder/Haddock SAP; (14) sampling exemption; (15) prohibition on 
combining small-mesh exempted fishery and sector trips in southern New 
England (SNE); (16) extra-large mesh requirement to target dogfish on 
trips excluded from at-sea monitoring (ASM) in SNE and Inshore GB; (17) 
requirement that Handgear A vessels carry a Vessel Monitoring System 
(VMS) unit when fishing in a single broad stock area; and (18) limits 
on the number of gillnets for Day gillnet vessels in the GOM. We also 
approved an exemption from the 6.5-inch (16.5-cm) minimum mesh size 
requirement for trawl nets to allow a 5.5-inch (14.0-cm) codend on 
directed redfish trips, however, that exemption was eliminated in 2021 
when we approved a new universal sector exemption for redfish as part 
of Framework Adjustment 61 (86 FR 40353; July 28, 2021). A detailed 
description of the previously granted exemptions and supporting 
rationale can be found in the applicable final rules identified in 
Table 4 below.

                     Table 4--Exemptions Previously Granted for Fishing Years 2021 and 2022
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             Exemptions                       Rulemaking            Date of publication          Citation
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1-2, 4-9...........................  Fishing Year 2011 Sector     April 25, 2011........  76 FR 23076.
                                      Operations Final Rule.
10-11..............................  Fishing Year 2012 Sector     May 2, 2012...........  77 FR 26129.
                                      Operations Final Rule.
12-14..............................  Fishing Year 2013 Sector     May 2, 2013...........  78 FR 25591.
                                      Operations Interim Final
                                      Rule.
3, 15..............................  Fishing Years 2015-2016      May 1, 2015...........  80 FR 25143.
                                      Sector Operations Final
                                      Rule.
16.................................  Framework 55 Final Rule....  May 2, 2016...........  81 FR 26412.
17.................................  Amendment 18 Final Rule....  April 21, 2017........  82 FR 18706.
18.................................  Fishing Year 2018 Sector     May 1, 2018...........  83 FR 18965.
                                      Operations Final Rule.
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Northeast Multispecies Federal Register documents can be found at http://www.greateratlantic.fisheries.noaa.gov/sustainable/species/multispecies/ sustainable/species/multispecies/.

Exemption Requests in Fishing Year 2023

    For fishing year 2023, sectors did not request any novel 
exemptions.

Classification

    NMFS is issuing this rule pursuant to section 305(d) of the 
Magnuson-Stevens Act. Consistent with MSA section 305(d), this action 
is necessary to carry out the Northeast Multispecies FMP in accordance 
with the FMP's implementing regulations. These regulations require NMFS 
approval of operations plans for sectors to receive their ACE for 
specific groundfish stocks. The NMFS Assistant Administrator has 
determined that this proposed rule is consistent with the Northeast 
Multispecies FMP, other provisions of the Magnuson-Stevens Act, and 
other applicable law, subject to further consideration after public 
comment.
    This proposed action is exempt from review under Executive Order 
12866 because it contains no implementing regulations.
    This proposed rule contains no information collection requirements 
under the Paperwork Reduction Act of 1995.
    NMFS finds that a 15-day comment period provides a reasonable 
opportunity for public participation in this action pursuant to 
Administrative Procedure Act section 553(c) (5 U.S.C. 553(c)), while 
also ensuring that the final rule is in place for the start of the 
groundfish fishing year on May 1, 2023. Because sectors would not be 
approved to operate or receive allocations in this fishery until this 
final rule is in place, stakeholder and industry groups expect this 
rule to be implemented prior to May. This is an annual allocation 
process established under the FMP, and, as such, it does not raise 
novel concerns for stakeholders. A prolonged comment period and 
subsequent potential delay in implementation past the start of the 2023 
fishing year would be both unnecessary and contrary to the public 
interest.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that this proposed rule, if adopted, would not have a 
significant economic impact on a substantial number of small entities.
    The proposed rule would approve sector operations plans for fishing 
years 2023 and 2024 and allocate ACE to the proposed approved sectors 
for fishing year 2023 (May 1, 2023, through April 30, 2024). Approved 
sectors are exempt from certain common pool effort control regulations 
(such as trip limits and days-at-sea), and instead fish under the 
sector provisions of the Northeast Multispecies FMP and their sector's 
harvest rules. As described below, this action is expected to have 
positive impacts on fishing vessels and permit holders.
    For Regulatory Flexibility Act purposes only, NMFS established a 
small business size standard for businesses, including their 
affiliates, whose primary industry is commercial fishing (see 50 CFR 
200.2). A business primarily engaged in commercial fishing (NAICS code 
11411) is classified as a small business if it is independently owned 
and operated, is not dominant in its field of operation (including its 
affiliates), and has combined annual receipts less than $11 million for 
all its affiliated operations worldwide. The determination of whether 
the entity is

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large or small is based on the average annual revenue for the most 
recent three years for which data are available (from 2019 through 
2021).
    To participate in the Northeast Multispecies Sector Program, 
vessels must possess a limited access multispecies permit and operate 
as a member of a sector. Therefore, entities holding one or more 
limited access multispecies permits are the entities that have the 
potential to be directly impacted by this action. Ownership data 
collected from permit holders indicates that there are 552 distinct 
business entities that hold at least one permit impacted by the 
proposed action. Of these, 544 are categorized as small entities and 8 
are categorized as large entities, per NMFS guidelines.
    This rule proposes to approve sector operations plans and contracts 
and grant regulatory exemptions for fishing years 2023 and 2024. This 
rule also proposes allocations of ACE to approved sectors for fishing 
year 2023 consistent with the FMP. The approval of sector operations 
plans for fishing years 2023 and 2024 and allocation of fishing year 
2023 ACE to sectors will have a positive impact on all 552 entities 
(including the 544 small entities), as it will provide additional 
flexibility afforded by participating in the sector program, rather 
than fishing under the common pool effort control regulations. Sectors 
are not required to fish in accordance with requirements in the common 
pool effort control regulations, such as limits on days-at-sea, trip 
limits, gear restrictions, and closures intended to control overall 
fishing mortality, all of which also would be subject to in-season 
modifications and fishery closures based on industry-wide landings. 
This additional flexibility is expected to improve the efficiency and 
economic opportunities of vessels in the sector program.
    For the reasons stated above, this proposed rule would not have a 
significant economic impact on a substantial number of small entities. 
As a result, an initial regulatory flexibility analysis is not required 
and none has been prepared.

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

    Dated: March 10, 2023.
Samuel D. Rauch, III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
[FR Doc. 2023-05283 Filed 3-14-23; 8:45 am]
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