[Federal Register Volume 88, Number 142 (Wednesday, July 26, 2023)]
[Rules and Regulations]
[Pages 48137-48140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15816]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 230720-0171]
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: Final rule.

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SUMMARY: NMFS issues this final rule to revise regulations for the 
commercial individual fishing quota (IFQ) Pacific halibut (halibut) 
fisheries for 2023 through 2027. This rule removes 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 provides 
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: Effective July 26, 2023.

ADDRESSES: 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 https://www.regulations.gov 
identified by docket number NOAA-NMFS-2023-0055 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 or 
[email protected].

SUPPLEMENTARY INFORMATION: NMFS published a proposed rule in the 
Federal Register on May 11, 2023 (88 FR 30272), with public comments 
invited through June 12, 2023. NMFS received two comment letters on the 
proposed rule. A summary of the comments and NMFS' responses are 
provided under the heading Comments and Responses below. The following

[[Page 48138]]

background sections describe the IFQ Program, the halibut IFQ vessel 
use caps, and this final rule. Detailed descriptions of the IFQ Program 
and the rationale and effects of this action are included in the 
preamble to the proposed rule and in the Analysis prepared for this 
action and are not repeated here (see ADDRESSES).

Background

    This rule implements regulations to temporarily remove vessel use 
caps in Areas 4A, 4B, 4C, and 4D for 2023 through 2027. Vessel use caps 
were recommended by the North Pacific Fishery Management Council 
(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 International Pacific 
Halibut Commission (IPHC) and consistent with the Halibut Act (16 
U.S.C. 773c(c)).

IFQ Program

    Commercial halibut and sablefish fisheries in Alaska are subject to 
regulation under the IFQ Program and the Community Development Quota 
(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 quota share (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 (Sec.  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) 
(Sec.  679.42(f)); (2) limits on the number of small amounts of 
indivisible QS units, known as QS blocks, that a person can hold (Sec.  
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 (Sec.  
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 (Sec.  
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 (Sec.  
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 in any fishing year. 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 fleet consolidation and reduction of crew 
jobs 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 preamble 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.
    This rule does not modify the vessel use caps for Areas 2C, 3A, 3B, 
and 4E. Vessels in these areas cannot be used to harvest more halibut 
IFQ than one-half percent of the combined total catch limits of halibut 
(Sec.  679.42(h)(1)). Applying this regulation to 2023 yields a vessel 
use cap of 89,030 lb (40.4 mt) in all areas. This final rule provides 
flexibility to vessels harvesting halibut IFQ in Areas 4A, 4B, 4C, and 
4D by removing the vessel use cap for 2023 through 2027. Vessels 
harvesting halibut IFQ in these areas are therefore not limited to a 
maximum proportion of annual halibut IFQ that may be harvested on a 
vessel. 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, the vessel use cap applicable to Area 4E is not modified 
by this rule.
    This rule also removes the vessel use cap applicable to a Community 
Quota Entity (CQE) in Area 4B from 2023 through 2027. In Area 4B, 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 not subject to the vessel use cap regulations at 
Sec.  679.42(h)(1)(ii) from the effective date of this final rule 
through 2027. Unless modified by a subsequent rulemaking, any vessel 
harvesting halibut IFQ derived from the QS held by the CQE representing 
the community of Adak after 2027 will be limited to harvest no more 
than 50,000 lb (22.7 mt).
    This rule does not modify other elements of the IFQ Program, nor 
IPHC actions related to the program. Specifically, this rule does not 
do any of the following:
     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.

Final Regulations

    This rule adds 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 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 Area 2C, 3A, or 3B

[[Page 48139]]

from 2023 through 2027. Unless modified by a subsequent rulemaking, 
after 2027, no vessel in Areas 2C, 3A, 3B, 4A, 4B, 4C, 4D, and 4E can 
be used to harvest more halibut IFQ than one-half percent of the 
combined total catch limits of halibut (Sec.  679.42(h)(1)).

Changes From Proposed to Final Rule

    NMFS did not make changes to the regulatory text in this final rule 
from the regulatory text in the proposed rule.

Comments and Responses

    NMFS received two comment letters during the public comment period 
for the proposed rule (88 FR 30272, May 11, 2023). One letter was from 
a CQE authorized to hold QS in Area 4B and the other was from an 
individual on a topic outside the scope of this action. Below, NMFS 
summarizes and responds to the three unique relevant comments.
    Comment 1: We support the proposed action to suspend the halibut 
IFQ vessel use caps in Area 4B for 2023 through 2027.
    Response: NMFS acknowledges this comment.
    Comment 2: The proposed regulatory language at Sec.  
679.42(h)(1)(iii) does not explicitly mention a ``CQE'' but it is 
clearly inclusive of all vessels harvesting IFQ halibut in Area 4B and 
this includes IFQ derived from QS held by the CQE in Area 4B.
    Response: NMFS agrees. This rule removes the vessel use cap 
applicable to a vessel harvesting IFQ derived from QS held by a CQE in 
Area 4B for 2023 through 2027.
    Comment 3: This action provides additional flexibility to the CQE 
authorized to hold QS in Area 4B by removing the 50,000 lb vessel use 
cap that would otherwise be applicable to harvesting vessels. Removing 
this vessel use cap will allow more of the CQE-held QS to be harvested 
and support the local economy.
    Response: NMFS acknowledges this comment.

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 
action is consistent with the Council's authority to allocate halibut 
catch among fishery participants in Convention waters off Alaska.
    Under 5 U.S.C. 553(d)(1), NMFS waives the 30-day delay in effective 
date of this final rule, which relieves a restriction on vessels by 
removing the use cap. It is important that this final rule is 
implemented in a timely manner before fishing vessels reach their use 
caps. An expedited implementation provides much needed flexibility and 
prevents unnecessary limits on fishing activity.
    This final 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 Final Regulatory 
Flexibility Analysis section.
    A final regulatory flexibility analysis (FRFA) was prepared. The 
FRFA incorporates the initial regulatory flexibility analysis (IRFA), a 
summary of the significant issues raised by any public comments in 
response to the IRFA, NMFS' responses to any such comments, and a 
summary of the analyses completed to support the action.

Small Entity Compliance Guide

    Section 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 states that, for each rule or group of related rules for 
which an agency is required to prepare a final regulatory flexibility 
analysis, the agency shall publish one or more guides to assist small 
entities in complying with the rule and shall designate such 
publications as ``small entity compliance guides.'' Copies of the 
proposed rule, this final rule, and the small entity compliance guide 
are available on the Alaska Region's website at: https://www.fisheries.noaa.gov/alaska/sustainable-fisheries/pacific-halibut-and-sablefish-individual-fishing-quota-ifq-program.

Final Regulatory Flexibility Analysis

    This FRFA incorporates the IRFA and the analyses completed to 
support this action. Section 604 of the Regulatory Flexibility Act 
(RFA) requires that when an agency promulgates a final rule under 
section 553 of Title 5 of the U.S. Code, after being required by that 
section or any other law to publish a general notice of proposed 
rulemaking, the agency shall prepare a FRFA. Section 604 describes the 
required contents of a FRFA: (1) A statement of the need for and 
objectives of the rule; (2) a statement of the significant issues 
raised by the public comments in response to the IRFA, a statement of 
the assessment of the agency of such issues, and a statement of any 
changes made to the proposed rule as a result of such comments; (3) the 
response of the agency to any comments filed by the Chief Counsel for 
Advocacy of the Small Business Administration (SBA) in response to the 
proposed rule, and a detailed statement of any change made to the 
proposed rule in the final rule as a result of the comments; (4) a 
description of and an estimate of the number of small entities to which 
the rule will apply or an explanation of why no such estimate is 
available; (5) a description of the projected reporting, recordkeeping, 
and other compliance requirements of the rule, including an estimate of 
the classes of small entities that will be subject to the requirement 
and the type of professional skills necessary for preparation of the 
report or record; and (6) a description of the steps the agency has 
taken to minimize the significant economic impact on small entities 
consistent with the stated objectives of applicable statutes including 
a statement of the factual, policy, and legal reasons for selecting the 
alternative adopted in this final rule and why each one of the other 
significant alternatives to the rule considered by the agency which 
affect the impact on small entities was rejected.
    A description of this final rule and the need for and objectives of 
this rule are contained in the preamble to this final rule and the 
preamble to the proposed rule (88 FR 30272, May 11, 2023). That 
description is not repeated here.

Public and Chief Counsel for Advocacy Comments on the IRFA

    NMFS published the proposed rule on May 11, 2023 (88 FR 30272). An 
IRFA was prepared and included in the Classification section of the 
preamble to the proposed rule. The comment period for the proposed rule 
closed on June 12, 2023. The Chief Counsel for Advocacy of the SBA did 
not file any comments on the proposed rule. NMFS received no comments 
specifically on the IRFA; therefore, no changes were made to this rule 
as a result of comments on the IRFA.

Number and Description of Small Entities Regulated by This Final Rule

    This final rule directly regulates the owners and operators of 
vessels that harvest halibut IFQ in IFQ Area 4A, 4B, 4C, or 4D. As of 
2021 (the most recent

[[Page 48140]]

year of gross revenue data), there were 98 unique vessels that 
harvested halibut IFQ in Area 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 section 2.6 in the Analysis prepared for the proposed rule 
(see ADDRESSES).

Recordkeeping, Reporting, and Other Compliance Requirements

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

Description of Significant Alternatives That Minimize Adverse Impacts 
on Small Entities

    The RFA requires identification of any significant alternatives 
that accomplish the stated objectives of the action, consistent with 
applicable statutes, and that would minimize any significant economic 
impact of the action on small entities. No alternatives to the action 
were considered. This action is the same as the action implemented in 
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 such 
restrictions would 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 
contained in this action 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 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. 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.

Collection-of-Information Requirements

    This 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: July 21, 2023.
Kimberly Damon-Randall,
Acting Deputy Assistant Administrator for Regulatory Programs, National 
Marine Fisheries Service.

    For the reasons set out in the preamble, NMFS amends 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 
Area 2C, 3A, or 3B during the 2023 through 2027 fishing years.
* * * * *
[FR Doc. 2023-15816 Filed 7-25-23; 8:45 am]
BILLING CODE 3510-22-P