[Federal Register Volume 88, Number 91 (Thursday, May 11, 2023)]
[Proposed Rules]
[Pages 30272-30275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10092]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 230505-0123]
RIN 0648-BM18


Pacific Halibut Fisheries; Catch Sharing Plan; Rulemaking To 
Modify the 2023-2027 Halibut Individual Fishing Quota (IFQ) Vessel 
Harvest Limitations in IFQ Regulatory Areas 4A, 4B, 4C, and 4D

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 this proposed rule to revise regulations for the 
commercial individual fishing quota (IFQ) Pacific halibut (halibut) 
fisheries for 2023 through 2027. This proposed rule would remove limits 
on the maximum amount of halibut IFQ that may be harvested by a vessel, 
commonly known as vessel use caps, in IFQ Regulatory Areas 4A (Eastern 
Aleutian Islands), 4B (Central and Western Aleutian Islands), 4C 
(Central Bering Sea), and 4D (Eastern Bering Sea). This action is 
needed to continue to provide additional flexibility and stability to 
IFQ participants in Areas 4A, 4B, 4C, and 4D while a longer term 
modification of vessel use caps is considered. This action is intended 
to promote the goals and objectives of the IFQ Program, the Northern 
Pacific Halibut Act of 1982 (Halibut Act), and other applicable laws.

DATES: Submit comments on or before June 12, 2023.

ADDRESSES: You may submit comments on this document, identified by FDMS 
Docket number NOAA-NMFS-2023-0055, 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-2023-0055 in the Search box. 
Click on the ``Comment'' icon, complete the required fields, and enter 
or attach your comments.
     Mail: Submit written comments to Gretchen Harrington, 
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 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).
    Electronic copies of the Categorical Exclusion and the Regulatory 
Impact Review (RIR) (herein referred to as the ``Analysis'') prepared 
for this action are available from www.regulations.gov or from the NMFS 
Alaska Region website at https://www.fisheries.noaa.gov/region/alaska.

FOR FURTHER INFORMATION CONTACT: Alicia M. Miller, 907-586-7228.

SUPPLEMENTARY INFORMATION: 

Authority for Action

    The International Pacific Halibut Commission (IPHC) promulgates 
regulations governing the North Pacific halibut fishery under the 
Convention between the United States and Canada for the Preservation of 
the Halibut Fishery of the Northern Pacific Ocean and Bering Sea 
(Convention). The IPHC's regulations are subject to approval by the 
Secretary of State with the concurrence of the Secretary of Commerce. 
NMFS publishes the IPHC's regulations as annual management measures 
pursuant to 50 CFR 300.62. The 2023 IPHC annual management measures 
published on March 7, 2023 (88 FR 14066).
    The Halibut Act, 16 U.S.C. 773c(a)-(b), provides the Secretary of 
Commerce with general responsibility for carrying out the Convention 
and the Halibut Act, including the authority to adopt regulations 
necessary to carry out the purposes and objectives of the Convention. 
The Halibut Act, 16 U.S.C. 773c(c), also provides the North Pacific 
Fishery Management Council (Council) with authority to develop 
regulations, including limited access regulations, that are in addition 
to, and not in conflict with, IPHC regulations. Regulations the Council 
recommends may be implemented by NMFS only after approval by the 
Secretary of Commerce.
    The Council has exercised its authority to develop halibut 
management programs for the subsistence, sport, and commercial halibut 
fisheries. The Secretary of Commerce exercised authority to implement 
the commercial IFQ halibut fishery management program, also known as 
``the IFQ Program'' (58 FR 59375, November 9, 1993). The IFQ Program 
for the halibut fishery is implemented by Federal regulations at 50 CFR 
part 679.
    The halibut IFQ fishery is managed in specific areas defined by the 
IPHC. These IFQ regulatory areas are: Area 2A (California, Oregon, and 
Washington); Area 2B (British Columbia); Area 2C (Southeast Alaska), 
Area 3A (Central Gulf of Alaska), Area 3B (Western Gulf of Alaska), and 
Area 4 (subdivided into five Areas, 4A through 4E, in the Bering Sea 
and Aleutian Islands of Western Alaska). These Areas are described in 
Figure 15 to 50 CFR part 679. The halibut IFQ fishery is limited to 
persons holding quota share (QS). There are also limits--commonly known 
as ``vessel use caps''--on how much halibut IFQ a vessel may harvest 
each year in Areas 2C, 3A, 3B, 4A, 4B, 4C, 4D, and 4E. Throughout this 
preamble, the term vessel use cap refers to regulations applicable to 
the halibut IFQ fishery (section 679.42(h)(1)).
    As relevant to this action, a Community Quota Entity (CQE) is 
authorized to hold halibut QS in Area 4B. Halibut IFQ derived from QS 
held by a CQE is subject to vessel use caps (section 679.42(h)(1)(ii)). 
NMFS also allocates halibut to the Western Alaska Community Development 
Quota (CDQ Program) in Areas 4B, 4C, 4D, and 4E (section 679.31(a)(2)), 
but those allocations are not subject to a vessel use cap and are not 
affected by this rulemaking.

Background

    This proposed rule would implement regulations to temporarily 
remove vessel use caps in Areas 4A, 4B, 4C, and 4D

[[Page 30273]]

for 2023 through 2027. Vessel use caps were recommended by the Council 
and implemented by NMFS as part of the IFQ Program (58 FR 59375, 
November 9, 1993) as regulations that were in addition to, and not in 
conflict with, those adopted by the IPHC, consistent with the Halibut 
Act (16 U.S.C. 773c(c)). The following sections describe the IFQ 
Program; halibut IFQ vessel use caps; the rationale and effects of 
temporarily removing vessel use caps in Areas 4A, 4B, 4C, and 4D; and 
the regulations that would be implemented under this proposed rule.

IFQ Program

    Commercial halibut and sablefish fisheries in Alaska are subject to 
regulation under the IFQ Program and the CDQ Program (50 CFR part 679). 
A key objective of the IFQ Program is to support the social and 
economic character of the fisheries and the coastal fishing communities 
where many of these fisheries are based. For more information about the 
IFQ Program, please refer to Section 2.3 of the Analysis. Because this 
rule is specific to the halibut IFQ fishery, reference to the IFQ 
Program in this preamble is specific to halibut unless otherwise noted.
    Under the IFQ Program, access to the commercial halibut fisheries 
is limited to those persons holding QS, which is the limited access 
permit NMFS uses to calculate a person's IFQ each year. Halibut QS is 
designated for a specific geographic area of harvest, a specific vessel 
operation type (catcher vessel (C/V) or catcher/processor), and for a 
specific range of vessel sizes that may be used to harvest the halibut 
(vessel category). Out of the four vessel categories of halibut QS, 
category A shares are designated for catcher/processors that process 
their catch at sea (e.g., freezer longline vessels) and do not have a 
vessel length designation, whereas category B, category C, and category 
D shares are designated to be fished on C/Vs that meet specific length 
designations (section 679.40(a)(5)).
    NMFS annually issues IFQ permits to each QS holder. IFQ permits 
authorize permit holders to harvest a specified amount of a particular 
IFQ species in an area from a specific operation type and vessel 
category, consistent with the QS they hold. IFQ is expressed in pounds 
(lb) and is based on the amount of QS held by the permit holder in 
relation to the total QS pool for each area with an assigned catch.
    The IFQ Program also establishes: (1) limits on the maximum amount 
of QS that a person could use (i.e., be used to receive annual IFQ) 
(section 679.42(f)); (2) limits on the number of small amounts of 
indivisible QS units, known as QS blocks, that a person can hold 
(section 679.42(g)); (3) limits on the ability of IFQ assigned to one 
C/V vessel category (vessel category B, C, or D IFQ) to be fished on a 
different (larger) vessel category with some limited exceptions 
(section 679.42(a)(2)); and (4) limits on the maximum amount of halibut 
IFQ that may be harvested by a vessel during an IFQ fishing year 
(section 679.42(h)). Only qualified individuals and initial recipients 
of QS are eligible to hold C/V QS, and they are required to be on the 
vessel when the IFQ is being fished, with a few limited exceptions 
(section 679.41(h)(2)). All of these limitations were established to 
retain the owner-operator nature of the C/V halibut IFQ fisheries, 
limit consolidation of QS, and ensure the annual IFQ is not harvested 
on a small number of larger vessels.

Halibut IFQ Vessel Use Caps

    The IFQ Program vessel use caps limit the maximum amount of halibut 
that can be harvested on any one vessel. The limits are intended to 
help ensure that a minimum number of vessels are engaged in the halibut 
IFQ fishery and to address concerns about the socio-economic impacts of 
consolidation under the IFQ Program. For additional detail on vessel 
use caps, see the preamble to the proposed rule for the IFQ Program (57 
FR 57130, December 3, 1992).
    This proposed rule refers to halibut catch limits, commercial 
halibut allocations, and vessel use caps in pounds (lb) and metric tons 
(mt). Net pounds and net metric tons are defined as the weight of 
halibut from which the gills, entrails, head, and ice and slime have 
been removed.
    Relevant to this proposed rule, for Areas 2C, 3A, 3B, 4A, 4B, 4C, 
4D, and 4E, vessels cannot be used to harvest more halibut IFQ than 
one-half percent of the combined total catch limits of halibut (section 
679.42(h)(1)). Applying this regulation to 2023 yields a vessel use cap 
of 89,030 lb (40.4 mt). This vessel use cap applies to vessels 
harvesting IFQ halibut in Areas 4A, 4B, 4C, 4D, and 4E. Notably, 
however, halibut harvested in Area 4E is currently entirely allocated 
under the CDQ Program and CDQ is not subject to vessel use caps. For 
that reason, Area 4E is not included in this proposed rule.
    Applicable to Area 4B for this proposed action, a CQE is authorized 
to hold halibut QS in Area 4B on behalf of the community of Adak, 
Alaska (79 FR 8870, February 14, 2014). A CQE is a NMFS-approved non-
profit organization that represents small, remote, coastal communities 
that meet specific criteria to purchase and hold C/V halibut QS on 
behalf of an eligible community. The CQE holds QS and leases the IFQ 
derived from the underlying QS. Any vessel harvesting halibut IFQ 
derived from the QS held by the CQE representing the community of Adak 
is subject to the vessel use cap regulations at Sec.  679.42(h)(1)(ii), 
which limit a vessel to harvest no more than 50,000 lb (22.7 mt), in 
addition to those set forth at Sec.  679.42(h)(1) introductory text and 
Sec.  679.42(h)(i).

Rationale and Effects of Temporarily Removing Vessel Use Caps in Areas 
4A, 4B, 4C, and 4D

    At its February 2023 meeting, the Council reviewed an analysis of 
proposed regulatory changes to remove vessel use caps applicable to the 
halibut IFQ fisheries in Areas 4A, 4B, 4C, and 4D from 2023 through 
2027 (Sections 1 and 2.2.3 of the Analysis). The Council requested this 
proposed rule to provide continued temporary flexibility to IFQ 
participants in IPHC Area 4 while the Council analyzes longer term 
adjustments to vessel use through the Council and public review 
process. The Council's selection of 2027 as the sunset date for this 
exemption does not signal any shift from the Council's intent to move 
the longer-term action through the Council process as efficiently as 
possible, but rather to provide enough time to develop and implement 
the longer-term solution and to minimize the likelihood that there is a 
gap between this temporary exemption and a subsequent permanent action.
    NMFS proposes this rule to provide flexibility to vessels operating 
in Area 4 between 2023 and through 2027. This action is expected to 
facilitate the harvest of halibut allocated under the IFQ program in 
Area 4 and provide harvest flexibility and stability to vessels 
operating in Area 4. This action is needed because a relatively large 
proportion of vessels participating in Areas 4A, 4B, 4C, and 4D halibut 
IFQ fisheries are operating near the current vessel use cap, thereby 
limiting the amount of additional IFQ that could be harvested on 
vessels operating in those areas (Section 2.2.3 of the Analysis). 
Additionally, this action is expected to provide flexibility to the CQE 
representing the community of Adak, Alaska, because the minimum number 
of vessels needed under current use caps exceeds the number of vessels 
owned by residents of the community (Section 2.3.1.3 of the Analysis). 
Vessel use cap limits are a core component of the IFQ Program that are 
designed to prevent consolidation and help protect entry level 
opportunities. As such, the

[[Page 30274]]

Council expressed concerns about vessel operators becoming reliant on 
the flexibility provided by this action and intends to develop a more 
tailored, longer-term solution, that will provide a better balance 
between the intent of vessel use cap provision and the evolving 
circumstances in Area 4A, 4B, 4C, and 4D.
    Sections 2.2.3 and 2.4 of the Analysis provide details on the 
efficacy of the rulemakings in 2020, 2021, and 2022 that temporarily 
removed vessel use caps in Area 4. The Analysis also includes a broader 
discussion of the range of factors considered for this proposed rule 
and the anticipated effects of removing the vessel use caps in Areas 
4A, 4B, 4C, and 4D, for both CQE and non-CQE-associated vessels for the 
2023 to 2027 fishing years. IFQ halibut harvested in Area 4 has 
declined in recent years, particularly in Area 4B. Compounding 
circumstances, including a decline in active processors, longer 
distances to travel to deliver to a processor, and high operating 
costs, have likely contributed to fewer vessels participating in Area 4 
fisheries. Information provided to the Council from stakeholders also 
emphasized that the decline in crab stocks has impacted the viability 
of local processing markets in Area 4 and that this temporary measure 
will help to improve and incentivize local access to the fishery and 
provide stability for fishermen in the near term. Additionally, the 
Council previously initiated a longer-term action in June 2022 to make 
more measured changes to halibut vessel use caps in Area 4; however, 
the Council recognized that action will take time to move through the 
Council and public review process and that flexibility is needed more 
immediately to provide additional stability to halibut IFQ participants 
in the interim.
    The Council did not recommend, and this proposed rule does not 
include, measures to relieve the vessel use caps for the sablefish IFQ 
fishery, or for other halibut IFQ areas, due to the larger number of 
vessels that are currently active in the sablefish IFQ fishery and 
these other halibut areas. As noted above, Area 4E was not included 
because halibut harvested in Area 4E is entirely allocated under the 
CDQ Program; therefore, vessel use caps are not constraining and not 
included in this action. Detailed information indicating that halibut 
harvests in other IFQ areas would not be constrained under the current 
vessel use caps is available in Section 2.3.1.4 of the Analysis.
    The proposed regulatory amendments in this rule would add a 
regulation that would temporarily remove vessel use caps in Areas 4A, 
4B, 4C, and 4D in the 2023 through 2027 fishing years. This proposed 
rule would provide flexibility to facilitate harvest of the halibut 
resource and is responsive to the Council request to implement this 
action beginning in the 2023 fishing year.
    This proposed rule would not modify other elements of the IFQ 
Program. Specifically, this proposed rule would not--
     Increase or otherwise modify the annual halibut catch 
limits adopted by the IPHC and implemented by NMFS (88 FR 14066, March 
7, 2023);
     Modify any other conservation measures recommended by the 
IPHC and implemented by NMFS, nor any other conservation measures 
implemented by NMFS independent of the IPHC; or
     Modify other limitations on the use of QS and IFQ 
described in the previous sections of this preamble.

Proposed Regulations

    This proposed rule would add a provision at Sec.  679.42(h)(1)(iii) 
to remove vessel use caps for vessels harvesting IFQ halibut in Areas 
4A, 4B, 4C, and 4D from 2023 through 2027 fishing years. Because vessel 
use caps are applied under existing regulations at the fishery level, 
including harvest in all areas, the proposed regulations clarify that 
harvest of IFQ halibut in regulatory Areas 4A, 4B, 4C, and 4D is 
excluded from the calculation of vessel use caps in Areas 2C, 3A, or 3B 
from 2023 through 2027.

Classification

    Regulations governing the U.S. fisheries for Pacific halibut are 
developed by the IPHC, the Pacific Fishery Management Council, the 
North Pacific Fishery Management Council (Council), and the Secretary 
of Commerce. Section 5 of the Halibut Act (16 U.S.C. 773c) allows the 
Regional Fishery Management Council having authority for the geographic 
area concerned to develop regulations governing the allocation and 
catch of halibut in the United States portion of Convention waters 
provided those regulations do not conflict with IPHC regulations. This 
proposed action is consistent with the Council's authority to allocate 
halibut catch among fishery participants in Convention waters off 
Alaska.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    A Regulatory Impact Review was prepared to assess costs and 
benefits of available regulatory alternatives. A copy of this analysis 
is available from NMFS (see ADDRESSES). Specific aspects of the 
economic analysis are discussed below in the Initial Regulatory 
Flexibility Analysis section.

Initial Regulatory Flexibility Analysis

    This Initial Regulatory Flexibility Analysis (IRFA) was prepared 
for this proposed rule, as required by Section 603 of the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 603), to describe the economic impact 
this proposed rule, if adopted, would have on small entities. The IRFA 
describes the action; the reasons why this proposed rule is proposed; 
the objectives and legal basis for this proposed rule; the number and 
description of directly regulated small entities to which this proposed 
rule would apply; the recordkeeping, reporting, and other compliance 
requirements of this proposed rule; and the relevant Federal rules that 
may duplicate, overlap, or conflict with this proposed rule. The 
description of the proposed action, its purpose, and the legal basis 
are explained in the preamble and are not repeated here.
    For RFA purposes only, NMFS has 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 (North American Industry Classification 
System 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 
not in excess of $11 million for all its affiliated operations 
worldwide.

Number and Description of Small Entities Regulated by This Proposed 
Rule

    This proposed rule would directly regulate the owners and operators 
of vessels that harvest halibut IFQ in IFQ Areas 4A, 4B, 4C, or 4D. As 
of 2021 (the most recent year of gross revenue data), there were 98 
unique vessels that harvested halibut IFQ in Areas 4A, 4B, 4C, or 4D. 
Based on average annual gross revenue data, including affiliations, all 
but one of these vessels that landed halibut in 2021 are considered 
small entities based on the applicable $11 million threshold. 
Additional details are included in Sections 2.6 in the Analysis 
prepared for this proposed rule (see ADDRESSES).

Impacts of This Action on Small Entities

    This action, if adopted, could better facilitate harvest of IFQ in 
Area 4 during the 2023 through 2027 fishing seasons.

[[Page 30275]]

Although it is difficult to discern the entire scope of impact of the 
regulatory exemptions implemented for the 2020-2022 fishing seasons, 
harvest rates achieved in 2020-2022 relative to prior years (2006-2019) 
indicate the regulatory flexibilities implemented in 2020, 2021, and 
2022 (both the temporary transfer provisions as well the vessel use cap 
exemptions) had some positive impact on the harvest rates, as described 
in Section 2.4.2 of the Analysis (See ADDRESSES).

Description of Significant Alternatives That Minimize Adverse Impacts 
on Small Entities

    The RFA requires identification of any significant alternatives to 
the proposed rule that accomplish the stated objectives of the proposed 
action, consistent with applicable statutes, and that would minimize 
any significant economic impact of the proposed rule on small entities. 
The Council considered one action alternative. No other alternatives 
were considered. This action is the same as the action implemented 2022 
and 2021 and similar to the action implemented in 2020, which did not 
include Area 4A.
    The status quo alternative would retain the existing vessel use cap 
restrictions as defined under Sec.  679.42(h). It is possible that 
existing vessel use caps regulations under the status quo may increase 
the likelihood that some of the annual halibut allocation is left 
unharvested in Area 4.
    The action alternative would remove limits on the maximum amount of 
halibut IFQ that may be harvested by a vessel in IFQ regulatory Areas 
4A, 4B, 4C, and 4D. The action alternative and the regulations proposed 
by this action, if adopted, would provide flexibility to IFQ 
participants in 2023 through 2027 to ensure allocations of halibut IFQ 
can be harvested by the limited number of vessels operating in these 
Areas. However, this proposed action could result in a reduction in 
existing operating vessels (and the associated crew jobs) and 
opportunities for new entrants in Areas 4A, 4B, 4C, and 4D, due to 
inability to compete with larger, more efficient, operations that are 
unconstrained by vessel limitations. Additionally, if there are fewer 
participants in the fishery, it is possible that landings could 
consolidate to fewer processors and communities depending on landing 
location and historic harvester-processor relationships.

Duplicate, Overlapping, or Conflicting Federal Rules

    NMFS has not identified any duplication, overlap, or conflict 
between this proposed rule and existing Federal rules.

Recordkeeping, Reporting, and Other Compliance Requirements

    This action does not contain additional recordkeeping, reporting, 
or other compliance requirements.

Collection-of-Information Requirements

    This proposed rule contains no information collection requirements 
under the Paperwork Reduction Act of 1995.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and Recordkeeping Requirements.

    Dated: May 8, 2023.
Samuel D. Rauch, III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, NMFS proposes to amend 50 
CFR part 679 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. In Sec.  679.42, add paragraph (h)(1)(iii) to read as follows:


Sec.  679.42  Limitations on use of QS and IFQ.

* * * * *
    (h) * * *
    (1) * * *
    (iii) Notwithstanding the vessel use caps specified in paragraphs 
(h)(1) introductory text and (h)(1)(ii) of this section, vessel use 
caps do not apply to vessels harvesting IFQ halibut in IFQ regulatory 
Areas 4A, 4B, 4C, and 4D during the 2023 through 2027 fishing years. 
IFQ halibut harvested in regulatory Areas 4A, 4B, 4C, and 4D is 
excluded from the calculation of vessel use caps for IFQ regulatory 
Areas 2C, 3A, or 3B during the 2023 through 2027 fishing years.
* * * * *
[FR Doc. 2023-10092 Filed 5-10-23; 8:45 am]
BILLING CODE 3510-22-P