[Federal Register Volume 89, Number 46 (Thursday, March 7, 2024)]
[Proposed Rules]
[Pages 16510-16520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04733]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 680

[Docket No. 240229-0066]
RIN 0648-BM81


Fisheries of the Exclusive Economic Zone; Bering Sea and Aleutian 
Islands Crab Rationalization 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 Amendments 54 and 55 
to the Fishery Management Plan (FMP) for Bering Sea and Aleutian 
Islands (BSAI) King and Tanner Crabs (Crab FMP). This proposed rule 
would revise two provisions of the Crab Rationalization Program (CR 
Program) to do the following: change active crab fishery participation 
requirements for crab quota share (crab QS) established for vessel 
operators and crew, and expand the exemptions for CR Program custom 
processing from processor use caps and remove the CR Program processor 
facility use cap. These actions are intended to provide operators and 
crew greater flexibility in meeting CR Program participation 
requirements and to improve CR Program processor efficiency. This 
proposed rule is intended to promote the goals and objectives of the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act), the Crab FMP, and other applicable laws.

DATES: Submit comments on or before April 8, 2024.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2023-0159, 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-2023-0159 in the Search box 
(note: copying and pasting the FDMS Docket Number directly from this 
document may not yield search results). 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 
https://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).

[[Page 16511]]

    Electronic copies of Amendments 54 and 55 to the Crab FMP, the 
Regulatory Impact Reviews (RIRs) prepared for Amendment 54 and 
Amendment 55, and the Categorical Exclusion prepared for this action 
may be obtained from https://www.regulations.gov or from the NMFS 
Alaska Region website at https://www.fisheries.noaa.gov/region/alaska. 
NMFS determined that this proposed action amending the Crab FMP and 
implementing the amendments are categorically excluded from 
requirements to otherwise prepare an environmental assessment under the 
National Environmental Policy Act.
    The Environmental Impact Statement (Program EIS), RIR (Program 
RIR), Final Regulatory Flexibility Analysis (Program FRFA), and Social 
Impact Assessment that were previously prepared for the CR Program are 
available from the NMFS Alaska Region website at https://www.fisheries.noaa.gov/region/alaska.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to NMFS at the above address and to 
https://www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Andrew Olson, 907-586-7228, 
[email protected].

SUPPLEMENTARY INFORMATION: The king and Tanner crab fisheries in the 
exclusive economic zone of the BSAI are managed under the Crab FMP. The 
Crab FMP was prepared by the Council under the Magnuson-Stevens Act as 
amended by the Consolidated Appropriations Act of 2004 (Pub. L. 108-
199, section 801). Regulations implementing the Crab FMP, including the 
CR Program, are primarily located at 50 CFR part 680.

Background

    NMFS implemented the CR Program as a limited access privilege 
program, also called a catch share program, for nine crab fisheries in 
the BSAI on March 2, 2005 (70 FR 10174). The CR Program FMP has been 
amended seventeen times since 2005.
    Amendments 54 and 55 to the Crab FMP and this proposed rule would 
revise two provisions of the CR Program to: (1) change active 
participation requirements for quota share established for CR Program 
vessel operators and crew, and (2) expand exemptions for custom 
processing from processor use caps and remove the processor facility 
use caps.

CR Program Overview

    The CR Program includes nine crab fisheries in the BSAI: Bristol 
Bay red king crab (BBR) (Paralithodes camtschaticus), Western Aleutian 
Islands (Adak) golden king crab (WAG) (Lithodes aequispinus)--West of 
174[deg] W, Eastern Aleutian Islands (Dutch Harbor) golden king crab 
(EAG)--East of 174[deg] W, Western Aleutian Islands (Adak) red king 
crab (WAI)--West of 179[deg] W, Saint Matthew Island blue king crab (P. 
platypus) (SMB), Pribilof Islands blue and red king crab (PIK), Western 
Bering Sea Tanner crab (WBT) (Chionoecetes bairdi)--West of 166[deg] W, 
Eastern Bering Sea Tanner crab (EBT)--East of 166[deg] W, and Bering 
Sea snow crab (BSS) (C. opilio). In this document, the phrases ``crab 
fishery'' and ``crab fisheries,'' quota share (QS),'' ``individual 
fishing quota (IFQ)'' refer to these fisheries and the associated CR 
Program, unless otherwise specified.
    The CR Program includes QS and processor quota share (PQS) that are 
revocable privileges and allow the holder to harvest or process a 
specific percentage of the annual total allowable catch (TAC) in a crab 
fishery, reduced by the allocation to the Western Alaska Community 
Development Quota (CDQ) Program and the Adak Community Development 
Allocation. CDQ entities are allocated 10 percent of the crab TACs and 
Adak is issued an annual allocation of 10 percent of the WAG TAC to 
provide BSAI communities the opportunity to participate and invest in 
the crab fisheries. This annual calculation is explained in regulations 
at Sec.  680.40(h).
    The CR Program initially assigned QS to persons based on their 
historic participation in one or more of the nine crab fisheries during 
a specific time period. Under the CR Program, NMFS issued four types of 
QS: catcher vessel owner (CVO) QS was assigned to holders of License 
Limitation Program (LLP) licenses who delivered their catch to 
shoreside crab processors or to stationary floating crab processors; 
catcher/processor owner (CPO) QS was assigned to LLP license holders 
who harvested and processed their catch at sea; catcher/processor crew 
(CPC) QS was issued to operators and crew on board catcher/processor 
vessels; and catcher vessel crew (CVC) QS was issued to operators and 
crew on board catcher vessels. Each crab fishing year, which is the 
period from July 1 of one calendar through June 30 of the following 
calendar year (Sec.  680.2), a person who holds QS in one or more of 
the crab fisheries may receive an exclusive harvest privilege for a 
portion of the annual TAC of a crab fishery, called IFQ. CVC QS and CPC 
QS, also called C shares, are described later in this preamble in C 
Shares and Active Participation Requirements.
    A person's QS holdings equates to specific pounds of IFQ that are 
calculated on an annual basis for use in the corresponding crab fishing 
year. Each year, a QS holder submits a timely and complete application 
for a crab IFQ permit in order to receive IFQ for each crab fishery in 
which the person holds QS (Sec.  680.40(g)). IFQ provides the crab QS 
holder with an annual allocation of pounds of crab for harvest in a 
specific crab fishery during the year in which it was allocated. The 
amount of each annual IFQ allocation is based on the amount of QS held 
by a person in relation to the total QS pool in a crab fishery (Sec.  
680.40(h)). For example, a person's QS equaling one percent of the QS 
pool in a crab fishery would receive IFQ to harvest one percent of the 
annual TAC allocated to QS in that crab fishery.
    NMFS also issued PQS to CR Program processors based on their 
historic participation in one or more of the nine crab fisheries during 
a specific period. Each year, PQS yields an exclusive privilege to 
process a portion of the IFQ for each crab fishery. This annual 
exclusive processing privilege is called individual processor quota 
(IPQ).
    Only a portion of the QS issued yields IFQ that is required to be 
delivered to a processor with IPQ also known as ``share matching.'' 
Share matching requires IFQ holders to match up shares with IPQ holders 
that have available IPQ. CVO QS is subject to designation as either 
Class A IFQ or Class B IFQ. Ninety percent of the IFQ derived from CVO 
QS is designated as Class A IFQ, and the remaining 10 percent is 
designated as Class B IFQ. Class A IFQ must be matched and delivered to 
a processor with IPQ. Class B IFQ is not required to be delivered to a 
processor holding IPQ for that fishery. Each year, there is a one-to-
one match of the total pounds of Class A IFQ with the total pounds of 
IPQ issued in each crab fishery.
    Annually, QS holders must submit a timely and complete 
``Application for Annual Crab Individual Fishing Quota (IFQ) Permit'' 
for allocations of IFQ for the upcoming crab fishing year in order to 
receive IFQ. IFQ applicants must indicate whether or not they are 
joining a cooperative. Each cooperative submits an annual IFQ 
application that includes the QS holder's annual IFQ application (or a 
copy of that application). Because

[[Page 16512]]

IPQ is not subject to cooperative management, a PQS holder applies for 
IPQ directly to NMFS, and NMFS issues IPQ directly to the PQS holder. 
Under regulations at Sec.  680.4(f), all applications for IFQ, IPQ, and 
cooperative IFQ must be filed with the NMFS Restricted Access 
Management (RAM) Division by June 15. Unresolved applications at the 
time of IFQ and IPQ issuance can result in a mismatch of A share IFQ to 
the IPQ it must be matched with.
    Although the crab fishing year begins on July 1 and runs through 
June 30 of the following calendar year, individual crab fisheries open 
at various times. For instance, the WAG and EAG crab fisheries 
typically open on August 1 and the remaining seven crab fisheries open 
on October 15 or later in the crab fishing year. Therefore, NMFS 
prioritizes review of IFQ and IPQ applications based on the timing of 
fishery openings. To aid QS and PQS holders in meeting the June 15 
application deadline, NMFS provides application forms on its website 
(see ADDRESSES), highlights the application deadline on the website, 
and sends notices to QS and PQS holders near the end of the crab 
fishing year reminding them to apply for IFQ or IPQ for the next crab 
fishing year.
    Crab fisheries are also subject to provisions intended to maintain 
crab processing activity in communities that had historic crab 
processing activity. Crab fisheries participants, such as catcher 
vessels, are subject to regional delivery and processing requirements, 
commonly known as regionalization. Certain crab fisheries, the WBT, 
EBT, and a portion of the WAG QS, are not regionalized. Crab fisheries 
are also subject to the right-of-first-refusal (ROFR) provisions 
included in the CR Program, with the exception of WBT, EBT, WAG and 
WAI. The ROFR provisions provide certain Eligible Crab communities 
(ECC) (Sec.  680.2) with an option to purchase PQS or IPQ that would 
otherwise be transferred outside of the community holding the ROFR.
    The CR Program limits the amount of QS that a person can hold 
(i.e., own), the amount of IFQ that a person can use (i.e., harvest 
crab), and the amount of IFQ that can be used on board a vessel (i.e., 
vessel harvest cap). Similarly, the CR Program limits the amount of PQS 
that a person, such as a crab processor, can hold (i.e., own), the 
amount of IPQ that a person can use (i.e., process crab), and the 
amount of IPQ that can be processed or custom processed at a given 
facility CR Program facility (i.e., processor cap). These limits are 
commonly referred to as QS ownership caps and use caps. The CR Program 
limits on IPQ use and holding and the amount of IPQ that can be 
processed at a given facility are discussed later in this preamble in 
the IPQ Use Caps and Custom Processing Arrangements section.
    The following sections of this preamble focus on the two proposed 
actions and describe (1) background information on CVC QS and CPC QS 
and active participation requirements, the annual IFQ and IPQ 
application process, IPQ use caps and custom processing arrangements, 
and the facility use cap; (2) the need for Amendment 54 to the Crab 
FMP; (3) the need for Amendment 55 to the Crab FMP; and (4) the 
specific provisions and impacts of this proposed rule.

C Shares and Active Participation Requirements

    NMFS initially allocated 3 percent of the QS to individuals holding 
State of Alaska Commercial Fisheries Entry Commission Interim Use 
Permits, generally vessel operators, who met specific historic and 
recent participation requirements in crab fisheries. After the initial 
issuance of CVC QS and CPC QS (collectively referred to as C shares), 
individuals may only acquire CVC QS or CPC QS through transfer (i.e., 
purchasing QS on the open market). The following CVC QS and CPC QS 
provisions are the subject of this action.
    An individual's CVC QS or CPC QS holdings equate to specific pounds 
of IFQ that are calculated on an annual crab fishing year basis. By 
June 15 of each crab fishing year, a CVC QS or CPC QS holder who wishes 
to participate in that crab fishing year's crab fishery must submit a 
timely and complete application for a crab IFQ permit in one or more 
crab fisheries in which that person holds QS.
    Both in original CR Program design and subsequently reinforced 
through Amendment 31 (discussed below) to the Crab FMP (80 FR 15891, 
March 26, 2015), the Council and NMFS intended that individuals holding 
CVC QS and CPC QS be active participants in CR Program crab fisheries. 
Since June 2018 (3 years after implementation of Amendment 31), in 
order to receive an annual allocation of CVC IFQ or CPC IFQ, the 
regulations require a CVC QS and CPC QS holder to have met either of 
the following conditions to demonstrate active participation:
    (1) Participated as crew in at least one delivery in a CR Program 
crab fishery in the 3 crab fishing years preceding the crab fishing 
year for which the holder is applying for IFQ; or
    (2) If the individual was an initial recipient of CVC QS or CPC QS, 
participated as crew in at least 30 days of fishing in a commercial 
fishery managed by the of State of Alaska or a U.S. commercial fishery 
in Federal waters off Alaska during the 3 crab fishing years preceding 
the crab fishing year for which the QS holder is applying for IFQ 
(Sec.  680.40(g)(2)).
    However, if a CVC QS or CPC QS holder holds QS in only a single 
crab fishery and that crab fishery is closed to fishing for an entire 
crab fishing year, NMFS will exclude that year when determining whether 
the CVC QS or CPC QS holder has satisfied the active participation 
requirement. If the CVC QS or CPC QS holder does not successfully 
demonstrate active participation over a 3-year period, the holder will 
not be issued IFQ for that subsequent crab fishing year.
    While a CVC QS and CPC QS holder has 3 years in which to 
demonstrate active participation in order to receive IFQ, there is a 
different period of time applied in order for the CVC QS and CPC QS 
holder to prevent revocation of the QS altogether. In order to retain 
CVC QS and CPC QS, an individual has 4 crab fishing years to meet these 
same participation requirements (Sec.  680.40(m)). The Council 
recommended revocation of CVC QS and CPC QS if the QS holder continues 
to be inactive as an incentive for CVC QS and CPC QS holders to divest 
so that the QS is not held by inactive individuals for extended periods 
of time. CVC QS and CPC QS holders are exempt from meeting the active 
participation requirements in order to receive CVC IFQ and CPC IFQ 
under two circumstances. First, CVC QS and CPC QS holders are exempt if 
they have held QS for less than 3 crab fishing years in order to 
receive annual allocation of IFQ (Sec.  680.40(g)(2)(iii)) and less 
than 4 crab fishing years in order to retain QS (Sec.  680.40(m)(5)). 
Second, CVC QS and CPC QS holders are exempt if they have at least 150 
fishing days of sea time as part of a harvesting crew in any U.S. 
commercial fishery and was either an initial recipient of QS or 
participated as crew in at least one crab delivery in a crab fishery in 
any 3 of the 5 crab fishing years prior to the CR Program 
implementation (Sec.  680.41(c)(1)(vii)(B)).
    In summary, and unless exempt from one of the requirements 
described in the preceding paragraph, if a CVC QS or CPC QS holder 
fails to satisfy the participation requirements for 3 consecutive crab 
fishing years, NMFS will send that individual a notice of withholding 
and will not issue IFQ for the subsequent crab fishing year (Sec.  
680.40(g)(3)(i)). If a CVC QS or CPC QS holder fails to satisfy the

[[Page 16513]]

participation requirements for 4 consecutive crab fishing years and 
does not divest their CVC QS or CPC QS, NMFS will revoke the QS (Sec.  
680.40(m)(4)). CVC QS and CPC QS holders are permitted to lease their 
IFQ and join cooperatives; however, CVC QS and CPC QS holders must meet 
the participation requirements in order to receive IFQ and retain QS 
(Sec.  680.40(m)). Regulations specifying eligibility to receive CVC or 
CPC QS or IFQ by transfer at Sec.  680.41(c)(2)(ii)(C) would continue 
to apply and are unchanged by this proposed rule.

Annual Application Process

    Annually, CVC QS and CPC QS holders must submit a timely and 
complete ``Application for Annual Crab Individual Fishing Quota (IFQ) 
Permit'' for allocations of IFQ for the upcoming crab fishing year.
    Prior to the fishing season each year, NMFS will alert crab fishery 
participants about their QS status. NMFS's notification process for CVC 
QS and CPC QS holders who fail to file their IFQ applications by the 
June 15 deadline or fail to meet participation requirements are 
similar. NMFS will issue a Notice of C Share QS Inactivity after 
reviewing the QS holder's annual crab IFQ permit application if NMFS 
has determined that the QS holder has failed to meet the participation 
requirements or failed to file an IFQ application by the June 15 
deadline. To ensure correct issuance of IFQ and IPQ (including the 
prescribed distribution of Class B IFQ derived from PQS holder 
affiliations), NMFS does not process any transfers of QS and PQS from 
the date applications for IFQ and IPQ are due (June 15) until issuance 
of those IFQ and IPQ (Sec.  680.41(b)(1)). Therefore, for crab 
fisheries that open in October, a CVC QS or CPC QS holder may not have 
an opportunity to transfer their QS after they receive an official 
Notice of C Share QS Inactivity.
    Further information regarding the period to submit evidence of 
participation for CVC QS and CPC QS holders who receive a Notice of C 
share QS Inactivity and the Initial Administrative Determination (IAD) 
process when submitted evidence fails to demonstrate active 
participation is available for IFQ withholding under Sec.  680.40(g)(3) 
and for QS revocations under Sec.  680.43. The process and timelines 
for the evidentiary period remain unchanged by this proposed rule and 
are explained in the following paragraphs. There are two different 
deadlines within which a CVC QS and CPC QS holder may submit evidence 
of participation if the holder received a notice of inactivity. A CVC 
QS or CPC QS holder who receives a Notice of C Share QS Inactivity will 
have 30 days to provide the information demonstrating participation as 
crew in at least one crab delivery that meets the requirements when the 
IFQ may be withheld. The CVC QS or CPC QS has holder has 60 days to 
submit evidence of participation when the QS may be revoked. Following 
the expiration of the 30- or 60-day evidentiary period, NMFS will then 
send an Initial Administrative Determination (IAD) to the CVC QS or CPC 
QS holder if NMFS determines that the submitted evidence fails to 
demonstrate active participation as crew in at least one crab delivery 
or if the additional information or evidence is not provided within the 
time period specified. The IAD will explain the basis for the 
withholding of IFQ or for the revocation of QS determination.
    A CVC QS or CPC QS holder who receives an IAD may appeal under the 
procedures set forth at 15 CFR part 906. To ensure that access to an 
annual allocation is not lost should a QS holder prevail on appeal of 
the IAD, NMFS holds in reserve the amount of IFQ in dispute until final 
agency action on the IAD. In some instances, final agency action is 
reached before NMFS issues IFQ for the upcoming crab fishing year, 
allowing NMFS to either issue the IFQ to the successful appellant or 
return the IFQ to the general pool for distribution if the IAD was not 
appealed or the appellant was unsuccessful in the appeal. However, in 
instances where a final agency action is not reached before NMFS issues 
IFQ for the upcoming crab fishing year, NMFS must continue to hold the 
disputed IFQ in reserve due to being unable to recalculate and 
redistribute pounds of IFQ after the crab season opens. Therefore, if 
an appeals process continues after issuances of IFQ and the CVC QS or 
CPC QS holder is not able to provide appropriate evidence to their 
case, this IFQ could be held in reserve and left unharvested for that 
year. However, if a CVC QS or CPC QS holder is issued a Notice of C 
Share QS Inactivity for the withholding of IFQ or revocation of QS, 
they have no evidence to provide, and their appeal is resolved prior to 
the issuance of IFQ, those pounds of crab may be able to be 
redistributed to the other CVC QS and CPC QS holders.
    To ensure correct issuance of IFQ and IPQ (including the prescribed 
distribution of Class B IFQ derived from PQS holder affiliations), NMFS 
does not process any transfers of QS and PQS from the date applications 
for IFQ and IPQ are due (June 15) until issuance of those IFQ and IPQ 
(Sec.  680.41(b)(1)). Therefore, for crab fisheries that open in 
October, a CVC QS or CPC QS holder may not have an opportunity to 
transfer their QS after they receive an official Notice of C Share QS 
Inactivity.

IPQ Use Caps and Custom Processing Arrangements

    When the Council recommended the CR Program, it expressed concern 
about the potential for excessive consolidation of QS and PQS, in which 
too few persons control all of the QS or PQS and the resulting annual 
IFQ and IPQ. The Council determined that excessive consolidation could 
have adverse effects on crab markets, price setting negotiations 
between harvesters and processors, employment opportunities for 
harvesting and processing crew, tax revenue to communities in which 
crab are landed, and other factors considered and described in the 
Program EIS. To address these concerns, the CR Program limits the 
amount of QS that a person can hold (i.e., own), the amount of IFQ that 
a person can use, and the amount of IFQ that can be used onboard a 
vessel. Similarly, the CR Program limits the amount of PQS that a 
person can hold, the amount of IPQ that a person can use (i.e., the 
amount of crab they can process), and the amount of IPQ that can be 
processed and custom processed at a given facility. Collectively, these 
limits are commonly referred to as use caps.
    There are two use caps that are the subject of this action. In most 
of the crab fisheries (i.e., EAG, WAG, BSS, WAI, and BBR), Sec.  
680.42(b)(1) limits a person to hold no more than 30 percent of the PQS 
initially issued in the fishery, and to use no more than the amount of 
IPQ resulting from 30 percent of the initially issued PQS in a given 
fishery. Four crab fisheries do not have PQS use caps. There is a 
limited use cap exemption for persons receiving more than 30 percent of 
the initially issued PQS. Exceeding this cap is prohibited under Sec.  
680.7(a)(7), which prohibits an IPQ holder from using more IPQ than the 
maximum amount of IPQ that may be held by that person. Only two PQS 
holders in the EAG, WAG, BSS, WAI, and BBR crab fisheries currently 
have holdings greater than 30 percent of the initially issued PQS based 
on their initial issuance (see Section 3.3.1.2 of the Analysis). With 
the exception of these PQS holders, no person may use, i.e., process, 
an amount of EAG, WAG, BSS, WAI, or BBR IPQ greater than an amount 
resulting from 30 percent of the initially issued PQS for that crab 
fishery. The rationale for the IPQ use caps is further described in the 
Program EIS and the final rule implementing the

[[Page 16514]]

CR Program (70 FR 10174, March 2, 2005).
    The CR Program is also designed to keep a person from evading the 
PQS ownership and IPQ use caps through corporate affiliations or other 
legal relationships. Section 680.42(b)(3)(iv) provides that IPQ use by 
an entity (other than a CDQ group) is calculated by summing the total 
amount of IPQ held by that entity and any of its affiliates. 
``Affiliation'' is defined in Sec.  680.2 to mean a relationship 
between two or more entities, where one entity directly or indirectly 
owns or controls 10 percent or more of the other entity. Additional 
elements of the definition of ``affiliation'' are described in Sec.  
680.2.
    Under Sec.  680.7(a)(7), in addition to the IPQ crab held by the 
owner of a processing facility, any IPQ crab that is custom processed 
at a facility an IPQ holder owns will also be applied against the IPQ 
use cap of the facility owner. For the purposes of the regulation, an 
ownership interest in the facility is attributed to all IPQ holders who 
have a 10 percent or greater direct or indirect ownership interest in 
the facility. A custom processing arrangement exists when an IPQ holder 
has a contract with the owners of a processing facility to have their 
crab processed at that facility and the IPQ holder does not have an 
ownership interest in that processing facility or is otherwise 
affiliated with the owners of that processing facility. In custom 
processing arrangements, the IPQ holder contracts with a processing 
facility operator to have the IPQ crab processed according to that IPQ 
holder's specifications. Custom processing arrangements commonly occur 
when an IPQ holder does not have an ownership interest in a shoreside 
processing facility in that region or cannot economically operate a 
stationary floating crab processor. Thus, custom processing ensures CR 
Program crab can be processed even when the IPQ holder is remote and 
unable to process their own IPQ.
    Although custom processing would typically be counted in 
calculating whether an IPQ holder has exceeded a use cap, there are 
several exemptions for IPQ crab processed under a custom processing 
arrangement. Shortly after implementation of the CR Program, the 
Council submitted and NMFS approved Amendment 27 to the Crab FMP (74 FR 
25449, May 28, 2009). Amendment 27 was designed to improve operational 
efficiencies in crab fisheries with historically low TACs or that occur 
in more remote regions by exempting certain IPQ crab processed under a 
custom processing arrangement from applying against the IPQ use cap of 
the owner of the facility at which IPQ crab are custom processed. For 
ease of reference, this preamble refers to this exemption as a ``custom 
processing arrangement exemption.''
    NMFS refers the reader to the preamble to the final rule 
implementing Amendment 27 to the Crab FMP for additional information 
regarding the rationale for custom processing arrangement exemptions in 
specific BSAI crab fisheries (74 FR 25449, May 28, 2009). Additionally, 
Amendment 47 added EBT and WBT IPQ crab to the custom processing 
arrangement exemption, allowing a facility to process more crab without 
triggering the IPQ use cap (81 FR 92697, December 20, 2016). This 
exemption was necessary to allow all of the EBT and WBT Class A IFQ 
crab to be processed at facilities currently processing EBT and WBT 
crab to prevent potential loss of benefits due to forgone crab 
harvests.
    Section 680.42(b)(7) describes the three requirements that must be 
met for the custom processing arrangement exemption to apply. First, 
the custom processing arrangement exemption applies to IPQ issued for 
BSS with a North Region designation, EAG, EBT, PIK, SMB, WAG processed 
west of 174[deg] W, and WAI or WBT. As described later in this 
preamble, the custom processing arrangement exemption does not apply to 
custom processing arrangements to IPQ issued for: BSS with a South 
region designation; WAG processed east of 174[deg] W; or BBR.
    Second, the custom processing arrangement exemption applies only 
when there is no affiliation between the person whose IPQ crab is 
processed at that facility and the IPQ holders who own that facility. 
As noted earlier, ``affiliation'' is defined at Sec.  680.2 as a 
relationship between two or more entities where one directly or 
indirectly owns or controls 10 percent or more of the other entity. 
Under Sec.  680.42(b)(7)(i), NMFS does not count IPQ crab that are 
custom processed at a facility as IPQ crab ``used'' by the owner of 
that facility when the person whose IPQ crab is being custom processed 
is not affiliated with an IPQ holder with 10 percent or greater direct 
or indirect interest in that facility. In such a case, NMFS credits a 
person who holds IPQ and who owns the processing facility only with the 
amount of IPQ crab held by that person, or any affiliates of that 
person, when calculating IPQ use caps.
    In summary, these regulations allow processing facility owners who 
also hold IPQ to use their facility, or facilities, to establish custom 
processing arrangements with other IPQ holders to process more crab 
without exceeding IPQ use caps. This increases the amount of crab 
available for processing at the facility and provides a more 
economically viable processing operation. These regulations allow more 
than 30 percent of the IPQ for these crab fisheries (i.e., BSS with a 
North Region designation, EAG, EBT, PIK, SMB, WAG processed west of 
174[deg] W, and WAI or WBT) to be processed at a facility when the 
person whose IPQ crab is being processed is not affiliated with an IPQ 
holder with 10 percent or greater direct or indirect interest in that 
facility (Sec.  680.42(b)(7)).
    Third, a custom processing arrangement exemption applies if the 
facility at which the IPQ crab are custom processed meets location 
requirements specified at Sec.  680.42(b)(7)(ii)(B). Namely, the 
facility must be located within the boundaries as established by the 
State of Alaska of a home rule, first class, or second class city in 
Alaska in existence on the effective date of regulations implementing 
Amendment 27 (June 29, 2009). Additionally, the facility must be either 
(1) a shoreside crab processor or (2) a stationary floating crab 
processor that is located within a harbor and moored at a dock, docking 
facility, or other permanent mooring buoy, except for if the stationary 
floating processor is located within the boundaries of the city of 
Atka. Additional information on the location requirements for these 
facilities is found in the preamble to the final rule implementing 
Amendment 27 (74 FR 25449, May 28, 2009).
    Finally, there is a prohibition against corporate entities owning a 
processing facility, if they are not linked through common ownership to 
a corporation holding IPQ, from processing more than 30 percent of the 
IPQ crab at the facility. Section 680.7(a)(8) specifically prohibits a 
shoreside crab processor or a stationary floating crab processor from 
receiving more than 30 percent of the IPQ issued for a particular crab 
fishery. Although this regulation was intended to foreclose an IPQ 
holder from excluding custom-processed crab from its 30 percent use cap 
calculation by creative corporate structuring, Amendment 27 exempted 
custom-processed IPQ crab from the exempt crab fisheries under Sec.  
680.42(b)(7)(ii)(A).
    Regulations implementing Amendment 27 also created a custom 
processing exemption for IPQ crab subject to ROFR provisions (Sec.  
680.42(b)(7)(ii)(C) and section 3.2.5 of the Analysis). This custom 
processing exemption applies to IPQ crab from any of the crab fisheries 
and is triggered when the IPQ crab is derived from PQS that is subject 
to a ROFR, is transferred

[[Page 16515]]

to another person who is not the initial recipient of the PQS, and who 
is located within the boundaries of the ECC for which the PQS is, or 
was, designated in the ROFR.

Facility Use Cap

    In addition to exempting custom processing from counting towards 
the IPQ use caps, Amendment 27 also prohibited a person from processing 
more than 60 percent of the IPQ issued for the WAI or EAG crab 
fisheries in a crab fishing year at a single processing facility east 
of 174[deg] W. This provision applies to all IPQ crab processed at a 
shoreside crab processor or stationary floating crab processor, and 
does not exempt IPQ crab that are delivered under a custom processing 
arrangement from IPQ use cap calculations. This provision was intended 
to limit the potential consolidation of IPQ ownership that could occur 
under the custom processing exemptions and to prevent excessive 
consolidation of the number of processors available to harvesters, a 
scenario that is more likely in these fisheries compared to the other 
fisheries with custom processing exemptions given their historically 
relatively small TACs compared to other crab fisheries.

Amendment 54 and Need for Action

    Amendment 54 and this proposed rule are intended to provide CVC QS 
and CPC QS holders greater flexibility in meeting participation 
requirements and more clarity as to what those requirements are. 
Amendment 54 would modify participation requirements for all CVC QS and 
CPC QS holders by instituting the following: (1) restarting the 3- and 
4-year rolling timeframes for meeting active participation requirements 
for all CVC QS and CPC QS holders, (2) authorizing NMFS to reissue QS 
that was revoked between July 1, 2019 and the effective date of a final 
rule implementing Amendment 54, (3) standardizing and expanding 
participation requirements by allowing all CVC QS and CPC QS holders--
both initial recipients and new entrants--to participate in 30 days of 
fishing in any commercial fishery off Alaska including crew on a tender 
vessel, (4) clarifying that the requirement to participate as crew in 
at least one crab delivery also includes participating in the fishing 
trip that results in a crab landing, and (5) clarifying the exemption 
for CVC QS or CPC QS holders who hold QS exclusively in closed crab 
fisheries applies to more than just a single closed crab fishery. The 
purpose of Amendment 54 and the proposed rule is to provide CVC QS and 
CPC QS holders greater flexibility in maintaining and meeting active 
participation requirements for the annual issuance of IFQ and the 
retention of QS due to low crab abundance and reduced crew 
opportunities. Since 2020, there have been limited opportunities for 
crew to participate actively in the crab fisheries because of low crab 
abundance and because of the impacts of the COVID-19 pandemic.
    On July 15, 2022, NMFS issued an emergency rule (87 FR 42390) to 
provide CVC QS and CPC QS holders 1 additional year to demonstrate 
active participation in any crab fishery for receiving IFQ or 
maintaining CVC QS or CPC QS, regardless of participation status in the 
preceding 4 years. At the same time the Council requested that 
emergency action, the Council also initiated an analysis of 
alternatives for changes to CVC QS and CPC QS participation 
requirements to address the reduced crew opportunities due to the 
COVID-19 pandemic and unforeseen decline in abundance of crab in the 
BSS fishery.
    As described in section 3.3.1 of the Analysis prepared for 
Amendment 54, the crab fisheries are currently in a state of flux with 
historical and recent closures continuing for a number of crab 
fisheries that have been declared overfished or in the process of 
rebuilding (Pribilof Islands blue king crab, SMB, and BSS) and are 
experiencing variable stock health dynamics impacted by environmental 
change (e.g., BBR, WBT, EBT, and BSS). Only two crab fisheries are 
considered unaffected by recent declines in abundance (e.g., WAG and 
EAG).
    The Council and NMFS established CVC QS and CPC QS, which are 
transferrable with participation requirements, as a mechanism to keep a 
portion of the crab QS in the hands of active fishery participants and 
provide opportunities for new entrants into the fishery. In developing 
Amendment 54, the Council recognized that some fishery participants 
struggled to maintain active participation during the COVID-19 pandemic 
and recent closures of crab fisheries due to low abundance, but the 
Council wanted to retain an active participation requirement. This 
action provides additional flexibility to existing CVC QS and CPC QS 
and continues to ensure that CVC QS and CPC QS is held and the 
associated IFQ is used by active fishery participants.
    The Council recommended and NMFS supports revisions to the active 
participation requirements due to the variability in crab stock 
abundance to allow CVC QS and CPC QS holders greater flexibility in 
meeting participation requirements for crab fisheries in order to 
receive annual allocation of IFQ and retention of QS, while clarifying 
the active or ``at-sea'' participation requirement. The Council 
recommended continued support for designating CVC QS and CPC QS for 
active participants in the crab fishery and encouraged those who are no 
longer active in the crab fishery to divest their CVC QS or CPC QS to 
maintain opportunity for new entrants to obtain QS. Re-implementation 
of the active participation requirements would provide a new 
opportunity for CVC QS and CPC QS holders to demonstrate active 
participation before any QS holder would have their QS revoked. 
Furthermore, this proposed rule would revise CVC QS and CPC QS holder 
participation requirements so that the requirements are the same for 
both initial recipients and new entrants.

Amendment 55 and Need for Action

    Amendment 55 and this proposed rule are intended to improve crab 
processor efficiency by (1) exempting custom processing activity for 
the remaining three crab fisheries from processor use caps, and (2) 
removing the facility use cap. Amendment 55 would exempt custom 
processing of BSS IPQ with a south region designation, BBR IPQ, and WAG 
IPQ processed east of 174[deg] W from being counted against a processor 
IPQ use cap. By exempting custom processing in these three crab 
fisheries, this action would align the application of the IPQ use caps 
across all crab fisheries. Further, Amendment 55 would remove the CR 
Program processor facility use cap applicable to the EAG and WAI 
fisheries. The EAG and WAI crab fisheries are the only two crab 
fisheries subject to a cap on the amount of IPQ that can be used as a 
facility (as distinguished from the IPQ use caps, which are specific to 
the IPQ holder). Processors in all crab fisheries would continue to be 
subject to the PQS use caps specified at Sec.  680.42(b)(1).
    Amendment 55 and this proposed rule are intended to provide 
additional flexibility for IPQ holders, processing facilities, and 
harvesters that participate in the affected crab fisheries. Many IPQ 
holders do not own a processing facility and rely on custom processing 
agreements with plants to process crab. Exempting custom processing 
from counting towards the cap on the amount of crab that an IPQ holder 
can process provides IPQ holders with a potentially larger market 
(i.e., additional crab processing facilities) to custom process their 
crab.

[[Page 16516]]

    The Council and NMFS recognize that the existing crab processing 
facility and IPQ use caps were designed and implemented when crab TACs 
in all crab fisheries were at a much higher level than recent years. 
Without the proposed action, four unaffiliated crab processing 
facilities would need to operate to fully process the crab fisheries. 
This is due to share matching requirements in order to custom process 
the crab in the BBR, south designated BSS, and WAG east of 174[deg] W. 
Given the high costs of operating a processing facility in the BSAI, 
this is not economically viable when very low amounts of crab are 
available. Amendment 55 would allow for more custom processing 
opportunities but would also benefit the processing sector overall by 
not forcing more facilities than are needed to process relatively small 
TACs.
    Amendment 55 would also provide an exemption to a regulatory 
constraint, which is expected to benefit participants in the BBR and 
WAG crab fisheries by expanding opportunities to fully harvest 
allocated QS. The proposed action is expected to improve processing 
efficiency in the fisheries. Additionally, the proposed action is 
expected to minimize processing costs and avoid unnecessary duplication 
by simplifying regulations and reducing resources needed to monitor and 
enforce the use caps. The proposed action would assist CR Program 
harvesters by ensuring that all available A share IFQ harvested crab 
have an opportunity to be processed rather than leaving a portion of 
the A share IFQ stranded if there are not enough processors operating, 
which could also benefit communities with processing facilities. 
Amendment 55 does not impact B share IFQ due to not having share 
matching requirements and can deliver to any registered crab receiver 
(RCR).
    The 30 percent PQS holding cap specified in regulations at Sec.  
680.42(b)(1)(i) would continue to apply to all crab fishery processors 
and is not modified by the proposed rule. NMFS expects that additional 
processors would enter the crab fisheries in years where the crab TACs 
are sufficiently high to make processing activity economically viable.

This Proposed Rule

    This proposed rule would make several changes to regulations at 50 
CFR part 680 to implement Amendments 54 and 55. Specifically, the 
following proposed changes are described in the sections below: (1) 
restart active participation requirements and reissue QS that NMFS 
revoked between July 1, 2019 until the final rule implementing 
Amendment 54 is implemented; (2) standardize participation requirements 
for all CVC QS and CPC QS holders, both initial issues and new 
entrants, and expand the 30-day participation requirement to include 
serving as crew on a tender vessel; (3) clarify crew participation 
during at least one fishing trip; (4) adjust exemptions for CVC QS and 
CPC QS holders with QS exclusively in closed crab fisheries; (5) expand 
exemptions for custom processing from processor use caps; and (6) 
remove the facility use cap.

Restart Active Participation Requirements and Reissue Revoked QS

    This proposed rule revises Sec.  680.40 to modify participation 
requirements that a CVC QS or CPC QS holder must satisfy to be eligible 
to receive an annual allocation of IFQ and retain QS. First, under 
proposed regulations at Sec.  680.40(g)(2) and (m)(1), the timing for 
when the active participation requirement would apply is restarted. The 
consecutive 3- and 4-year rolling requirement would apply starting on 
the date the final rule implementing Amendment 54 goes into effect. A 
CVC QS or CPC QS holder would then have 3 years to demonstrate 
participation in order to receive their allocation of IFQ and 4 years 
to demonstrate participation to retain QS and avoid QS revocation 
(Sec.  680.43).
    This proposed rule adds a regulation at Sec.  680.40(m)(6) to allow 
a CVC QS or CPC QS holder to request NMFS to reissue any QS that NMFS 
revoked from July 1, 2019, through the date a final rule implementing 
Amendment 54 goes into effect. In order to initiate reissuance of 
previously revoked CVC QS or CPC QS, NMFS would add a field on the 
annual application for a crab IFQ permit to be available for two 
application cycles. This would provide approximately 1 year, to 
encompass two application cycles (due on June 15 each year), for an 
individual to request reissuance of their revoked CVC QS or CPC QS.
    For example, if this action were approved, and a final rule was 
effective on June 1, 2024, which is prior to the application deadline 
of June 15, 2024, for the 2024/2025 crab fishing year, QS that had been 
revoked between July 1, 2019, and June 1, 2024, would be reissued to 
those CVC QS and CPC QS holder who applied for reissuance as part of 
the annual application for crab IFQ between the application period of 
June 1, 2024, through June 15, 2025. This would provide CVC QS and CPC 
QS holders two annual crab IFQ application opportunities to apply for 
QS reissuance. Active participation requirements would restart for the 
2024/2025 crab fishing year and CVC QS and CPC QS holders would not 
need to demonstrate active participation until the 2027/2028 crab 
fishing year for annual issuance of IFQ and in 2028/2029 for retention 
of QS. In order to receive IFQ for the 2027/2028 crab fishing year, a 
CVC QS or CPC QS holder would have to satisfy the participation 
requirements during the 2024/2025, 2025/2026, or 2026/2027 crab fishing 
years. For retention of QS in the subsequent 2028/2029 crab fishing 
year, a CVC QS or CPC QS holder would have to satisfy participation 
requirements during the 2024/2025, 2025/2026, 2026/2027, or 2027/2028 
crab fishing years.

Expand and Standardize Participation Requirements and Allow Tendering

    This proposed rule would modify regulations at Sec.  680.40(g)(2) 
and (m)(2) to remove the distinction between initial recipients and new 
entrants. This proposed rule would expand and clarify participation 
requirements for new entrants to match the requirements of initial 
recipients where all CVC QS and CPC QS holders can satisfy the 
participation requirements by either participating in at least one 
fishing trip with a delivery of crab in any crab fishery or by 
participating in a combination of crew activity on a fishing vessel or 
tender vessel in State of Alaska or Federal commercial fisheries in 
waters off Alaska for at least 30 days during the crab fishing year 
immediately preceding the crab fishing year for which the CVC QS or CPC 
QS holder is filing an annual application for a crab IFQ permit.
    This proposed rule would also clarify the standard for meeting 
participation requirements by participating in one crab delivery to 
also include the fishing trip that results in a delivery of crab in any 
crab fishery. This proposed rule would modify the definition of 
``fishing trip'' to specify that the definition is also applicable for 
purposes of participation requirements at Sec.  680.40(g) and (m).

Clarify the Closed Fishery Exemption

    This proposed rule would expand the closed fishery participation 
exemption for CVC QS and CPC QS holders who only hold QS in closed crab 
fisheries. This exemption would apply when a CVC QS or CPC QS holder 
holds only QS in one or more crab fisheries and all those crab 
fisheries are closed to fishing for an entire crab fishing year. In 
that situation, NMFS will exclude that crab

[[Page 16517]]

fishing year when determining if the individual has satisfied the 
participation requirement for annual issuance of IFQ and revocation of 
QS. An individual with CVC QS or CPC QS in multiple crab fisheries 
would have to satisfy the participation requirement for any of the crab 
fisheries that are open and in which they hold QS.

Remove IPQ Facility Use Cap for Eastern Aleutian Islands Golden King 
Crab (EAG) and Western Aleutian Islands Red King Crab (WAI)

    This proposed rule would revoke regulations at Sec.  680.7(a)(9) to 
remove the cap on shoreside crab processors and stationary floating 
crab processors east of 174[deg] W from processing more than 60 percent 
of the IPQ issued in the EAG and WAI crab fisheries. The EAG and WAI 
crab fisheries are the only two crab fisheries subject to a 60 percent 
cap on the amount of IPQ that can be used at a facility. This change 
would remove this restriction that is specific to only the EAG and WAI 
crab fisheries and help ensure that allocated IFQ would not be stranded 
if there is not more than one processing facility operating for each of 
these crab fisheries.

Exempt Custom Processing From IPQ Use Caps

    This proposed rule would make numerous regulatory changes to exempt 
custom processing of BSS IPQ with a south-region designation, BBR IPQ, 
and WAG IPQ processed east of 174[deg] W from the IPQ use caps and 
would simplify regulations pertaining to facility use caps associated 
with custom processing.
    First, this proposed rule would revise regulations at Sec.  
680.42(b) to exempt custom processed crab from the IPQ use cap. 
Amendment 55 would add the BSS, BBR, and WAG crab fisheries to the list 
of fisheries in which custom processing is exempt from the IPQ use cap. 
This would mean that custom processing would only count toward the IPQ 
use cap under rare situations involving processing outside of specific 
geographic boundaries. As such, this proposed rule would remove 
regulations at Sec.  680.42(b)(7) and (8), the circumstances under 
which custom processing does not count in calculating IPQ use caps, and 
would revise remaining regulations (included at Sec.  680.42(b)(1) 
through (9) of this proposed rule) to specify how IPQ use caps shall be 
calculated under the proposed action.
    To simplify the application of the IPQ use cap, this proposed rule 
would modify the definition of ``custom processing'' at Sec.  680.2 to 
specifically define ownership interest consistent with terminology used 
by in regulations governing the previous IPQ use caps exemptions at 
Sec. Sec.  680.7(a)(7) and 680.42(b)(7). This proposed rule would then 
insert the term ``custom processing'' at Sec.  680.42(b) to clarify 
that IPQ crab that is custom processed, as that term is defined under 
Sec.  680.2, in any crab fishery would no longer count towards IPQ use 
caps. This proposed rule also would revise Sec.  680.7(a)(7) to add a 
reference to Sec.  680.42(b) to indicate where the reader can find the 
calculation of IPQ crab used for use caps.
    This proposed rule would also remove paragraph Sec.  680.7(a)(8) 
that prohibits using a corporate form to circumvent the IPQ use cap by 
arranging custom processing. This regulation meant that IPQ crab 
processed under a custom processing arrangement would not apply against 
the limit on the maximum amount of IPQ crab that can be processed at a 
facility in which no IPQ holder has a 10 percent or greater ownership 
interest. But this proposed action would exempt custom processing in 
all fisheries from counting towards the IPQ use cap if processed within 
certain geographic boundaries. Thus, the prohibition at Sec.  
680.7(a)(8) is no longer needed and this proposed rule would remove it.
    Additionally, this proposed rule would modify Sec.  680.42(b)(1) to 
specify that a person may not use IPQ in excess of the amount of IPQ 
resulting from the PQS held by that person unless that person received 
an initial allocation of PQS exceeding the 30 percent holding cap, is 
subject to an exemption specified at Sec.  680.4(p), or is used for 
custom processing at a facility within specific boundaries identified 
under Amendment 27 as specified at proposed Sec.  
680.42(b)(1)(ii)(C)(2).
    This proposed rule would also modify Sec.  680.42(b)(2) 
introductory text and subparagraph (ii) to make technical corrections 
to the regulations and correctly reference the proposed custom 
processing exemption.
    Regulations at Sec.  680.42(b)(3) through (6) would be reorganized 
for improved clarity and understanding and included in the proposed 
regulations as paragraphs Sec.  680.42(b)(3) through (9). The substance 
of these reorganized regulations at Sec.  680.42(b)(3) through (6) has 
not been modified, but rather renumbered and edited for clarity.

Additional Regulatory Changes

    This proposed rule also includes various technical edits and 
corrections to the regulations to remove typographical errors and 
improve their clarity.
    At Sec.  680.41(j), this proposed rule would correct a 
typographical error to change the word ``and'' to ``an''.
    At Sec.  680.42(a)(3)(i), this proposed rule would strike the 
phrase ``more than'', which is redundant of the phrase ``in excess 
of'', which precedes it.
    At Sec.  680.42(b)(1)(i), this proposed rule would replace the 
phrase ``more than'' with the phrase ``PQS in excess of'' to make the 
language consistent with similar language at Sec.  680.42(b)(1)(ii) 
that applies to use of IPQ.
    At Sec.  680.42(b)(2), this proposed rule would replace the phrase 
``more than'' with the phrase ``IPQ in excess of'' to make the language 
consistent with similar language at Sec.  680.42(a).

Classification

    Pursuant to sections 304(b)(1)(A) and 305(d) of the Magnuson-
Stevens Act, the NMFS Assistant Administrator has determined that this 
proposed rule is consistent with Amendments 54 and 55, other provisions 
of the Magnuson-Stevens Act, and other applicable law, subject to 
further consideration after public comment.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.

Certification Under the Regulatory Flexibility Act

    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that the proposed rule, if adopted, would not have a 
significant economic impact on a substantial number of small entities. 
The factual basis for this determination is as follows: A description 
of the proposed rule, why it is being considered, and the objectives 
of, and legal basis for this proposed rule are contained at the 
beginning of this the proposed rule in the preamble and in the summary 
section of the preamble. The Magnuson-Stevens Act provides the 
statutory basis for this rulemaking. No duplicative, overlapping, or 
conflicting Federal rules have been identified.
    The RIRs prepared for Amendments 54 and 55 contain a description of 
the purpose and need for the proposed actions, the statutory authority 
for the proposed actions, and a description of the alternatives, 
including a description of the status quo. Entities that would be 
directly regulated by this proposed rule include (1) 13 IPQ holders (2) 
6 crab processing facilities (3) 160 CVC QS and CPC QS holders.
    The proposed regulatory changes to implement Amendment 55 are 
intended to increase operational efficiency for these entities by 
removing the facility

[[Page 16518]]

use cap for IPQ and/or removing custom processing from the accounting 
of IPQ caps for certain crab species when processed east of 174[deg] W. 
Therefore, it is expected that the proposed action would have a 
beneficial on small entities.
    The proposed regulatory changes to implement Amendment 54 are 
intended to respond to the recent combined impacts of the COVID-19 
pandemic and the recent and substantial decline in crab abundance and 
fishery closures which have substantially reduced opportunities for 
crew to participate in crab fisheries. The proposed action also 
addresses concerns about future diminished opportunities for crew if 
crab stocks remain low. Therefore, the proposed actions are intended to 
provide more flexibility (relative to status quo) for CVC QS and CPC QS 
holders when there are diminished opportunities for crew positions on 
crab fishery vessels. Therefore, this action is expected to benefit CVC 
QS and CPC QS holders relative to the no action alternative.
    The costs and benefits of the proposed action relative to the 
status quo are described qualitatively and quantitatively. The RIRs 
also provide information about potential indirect effects and 
distributional effects of the alternatives, and a description of the 
net benefits to the Nation under the preferred alternative. Therefore, 
the RIRs conclude that the proposed actions would result in a net 
benefit to the Nation.
    The analysis was developed through the Council process from 2021 
through 2023. The information presented in the analyses was developed 
through the Council process, with numerous opportunities for 
individuals and entities that may be affected by the proposed action to 
provide input about potential economic impacts. CR participants 
provided extensive input to the Council and its advisory bodies on the 
anticipated impacts of the proposed action.
    The proposed provisions provide flexibility to all directly 
regulated entities. Therefore, no directly regulated entities are 
expected to be adversely impacted by the proposed action.
    The information provided above supports a determination that the 
actions would not have a significant economic impact on a substantial 
number of small entities. Because the proposed rule, if implemented, is 
not expected to have a significant economic impact on any small 
entities, an initial regulatory flexibility analysis is not required 
and none has been prepared.

Collection-of-Information Requirements

    This proposed rule contains a collection-of-information requirement 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). This rule revises the 
existing requirements for the collection of information OMB Control 
Number 0648-0514 (Alaska Region Crab Permits). Because of a concurrent 
action for 0648-0514, the revision to that collection of information 
for this proposed rule will be assigned a temporary control number that 
will later be merged into 0648-0514.
    This collection would be revised to add an option to the 
Application for Annual Crab IFQ Permit for a CVC QS and CPC QS holder 
to request reissuance of previously revoked CVC QS or CPC QS. This 
revision does not change the number of respondents, responses, burden 
hours, or burden cost for this application. The public reporting burden 
for the Application for Annual Crab IFQ Permit is estimated to average 
2.5 hours, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    Public comment is sought regarding the following: whether this 
proposed collection of information is 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 
at https://www.reginfo.gov/public/do/PRAMain.
    Notwithstanding any other provisions of the law, no person is 
required to respond to, nor shall any person by 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 680

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: March 1, 2024.
Samuel D. Rauch, III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reason set out in the preamble, NMFS proposes to amend 50 
CFR part 680 as follows:

PART 680--SHELLFISH FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF 
ALASKA

0
1. The authority citation for 50 CFR part 680 continues to read as 
follows:

    Authority:  16 U.S.C. 1862; Pub. L. 109-241; Pub. L. 109-479.

0
2. Amend Sec.  680.2, by revising the definition for ``Custom 
processing'', adding the definition for ``Fishing trip'', and removing 
the definition for ``Fishing trip for purposes of Sec.  680.7(e)(2)'' 
to read as follows:


Sec.  680.2   Definitions.

* * * * *
    Custom processing means processing crab in any CR fishery when the 
IPQ holder does not have a 10 percent or greater direct or indirect 
ownership interest in the processing facility or affiliation with the 
processing facility's owners.
* * * * *
    Fishing trip means, for the purposes of Sec. Sec.  680.7(e)(2), 
680.40(g)(2)(i)(A), and 680.40(m)(2)(i), the period beginning when a 
vessel operator commences harvesting crab in a crab QS fishery and 
ending when the vessel operator offloads or transfers any processed or 
unprocessed crab in that crab QS fishery from that vessel.
* * * * *
0
2. Amend Sec.  680.7 by:
0
a. Adding a comma after the first use of ``fishery'' in paragraph 
(a)(5);
0
b. Revising paragraph (a)(7); and
0
c. Removing paragraphs (a)(8) and (9).
    The addition and revision read as follows:


Sec.  680.7   Prohibitions.

    (a) * * *
    (7) For an IPQ holder to use more IPQ than the maximum amount of 
IPQ that may be held by that person under Sec.  680.42(b).
* * * * *
0
3. Amend Sec.  680.40 by revising paragraphs (g)(2), (g)(3) 
introductory text, (m)(1), (2), and (5), and adding paragraph (m)(6) to 
read as follows:


Sec.  680.40   Crab quota share (QS), processor QS (PQS), individual 
fishing quota (IFQ), and individual processor quota (IPQ).

* * * * *

[[Page 16519]]

    (g) * * *
    (2) Eligibility for CVC IFQ and CPC IFQ. For each crab fishing year 
after June 30, [date 3 years after date of publication in the Federal 
Register], individuals holding CVC QS or CPC QS permits must meet the 
participation requirements set forth in paragraph (g)(2)(i) of this 
section in order to receive CVC IFQ or CPC IFQ, unless the CVC QS 
permit holder or CPC QS permit holder meets the exemption provided in 
paragraph (g)(2)(ii) of this section.
    (i) During one of the 3 crab fishing years preceding the crab 
fishing year for which the individual is filing an annual crab IFQ 
permit application, the individual has participated as crew in at 
least:
    (A) One fishing trip where a delivery of crab is made in any CR 
fishery; or
    (B) 30 days of:
    (1) Fishing in a commercial fishery managed by the State of Alaska 
or in a Federal commercial fishery in the EEZ off Alaska. Individuals 
may combine their participation as crew in State of Alaska and Federal 
commercial fisheries in waters off Alaska to meet this requirement; or
    (2) On a tender vessel operating in support of a commercial fishery 
managed by the State of Alaska or in a Federal commercial fishery in 
the EEZ off Alaska. Individuals may combine their participation as crew 
on a tender vessel in State of Alaska and Federal commercial fisheries 
in waters off Alaska to meet this requirement.
    (C) Individuals may combine their participation specified in 
paragraphs (g)(2)(i)(B)(1) and (2) of this section to meet this 
requirement.
    (D) If the individual holds CVC QS or CPC QS in one or more CR 
fisheries and all CR crab fisheries for which the QS holder holds QS 
are closed, NMFS will exclude that crab fishing year when determining 
whether the individual has satisfied the participation requirements 
specified in paragraph (g)(2)(i) of this section.
    (ii) All of the CVC QS or CPC QS permits held by the individual 
were acquired using the eligibility criteria in Sec.  
680.41(c)(1)(vii)(B) or reissued under paragraph (m)(6) of this section 
and the individual has held those CVC QS or CPC QS permits for less 
than 3 crab fishing years.
    (3) Withholding of CVC IFQ or CPC IFQ. Beginning July 1, [date 3 
years after date of publication in the Federal Register], the Regional 
Administrator will withhold issuance of CVC IFQ or CPC IFQ to an 
individual who has not met the participation requirements set forth in 
paragraph (g)(2) of this section. The Regional Administrator will 
withhold an individual's CVC IFQ or CPC IFQ in accordance with the 
procedures set forth in paragraphs (g)(3)(i) and (ii) of this section.
* * * * *
    (m) * * *
    (1) Beginning July 1, [date 4 years after date of publication in 
the Federal Register], and each crab fishing year thereafter, 
individuals allocated CVC QS or CPC QS must meet the participation 
requirements set forth in paragraph (m)(2) of this section in order to 
retain their CVC QS or CPC QS unless the CVC QS holder or CPC QS holder 
meets the exemption provided in paragraph (m)(5) of this section.
    (2) During one of the 4 crab fishing years preceding the crab 
fishing year for which the individual is filing an annual crab IFQ 
permit application, the individual has participated as crew in at 
least:
    (i) One fishing trip where a delivery of crab is made in any CR 
fishery; or
    (ii) 30 days of:
    (A) Fishing in a commercial fishery managed by the State of Alaska 
or in a Federal commercial fishery in the EEZ off Alaska. Individuals 
may combine their participation as crew in State and Federal commercial 
fisheries to meet this requirement; or
    (B) On a tender vessel operating in support of a commercial fishery 
managed by the State of Alaska or in a Federal commercial fishery in 
the EEZ off Alaska. Individuals may combine their participation as crew 
on a tender vessel in State and Federal commercial fisheries to meet 
this requirement.
    (iii) Individuals may combine participation specified in paragraph 
(m)(2)(ii)(A) and paragraph (m)(2)(ii)(B) of this section to meet this 
requirement.
    (iv) If the individual holds CVC QS or CPC QS in one or more CR 
crab fisheries and all CR crab fisheries for which the QS holder holds 
QS are closed, NMFS will exclude that crab fishing year when 
determining whether the individual has satisfied the participation 
requirement specified in paragraph (m)(2) of this section.
* * * * *
    (5) All of the CVC QS or CPC QS permits held by the individual were 
acquired using the eligibility criteria in Sec.  680.41(c)(1)(vii)(B) 
or reissued under paragraph (m)(6) of this section, and the person has 
held those CVC QS or CPC QS permits for less than 4 crab fishing years.
    (6) For CVC QS or CPC QS revoked by NMFS under regulations 
paragraph (m)(2) of this section from July 1, 2019, through [effective 
date of final rule], an individual may apply for reissuance of QS with 
the individual's annual crab IFQ permit application from [effective 
date of final rule] through June 15, [1-year after publication of final 
rule].
* * * * *


Sec.  680.41   [Amended]

0
4. Amend Sec.  680.41 by removing the word ``and'' and adding in its 
place the word ``an'' in the paragraph heading for paragraph (j).
0
5. Amend Sec.  680.42 by:
0
a. Removing the phrase ``more than'' in paragraph (a)(3)(i);
0
b. Removing the phrase ``more than'' and adding in its place the phrase 
``PQS in excess of'' in paragraph (b)(1)(i);
0
c. Revising paragraphs (b)(1)(ii)(A) and (B), adding paragraph 
(b)(1)(ii)(C), and revising paragraphs (b)(2) introductory text, 
(b)(2)(ii), and (b)(3);
0
d. Redesignating paragraphs (b)(4) through (6) as paragraphs (b)(7) 
through (9);
0
e. Adding new paragraphs (b)(4) through (6);
0
f. Removing the reference to ``(b)(4)(iv)'' and adding in its place 
``(b)(7)(iv)'' in newly redesignated paragraph (b)(7); and
0
g. Removing references to ``(b)(4)'' and adding in their place 
``(b)(7)'' in two instances in newly redesignated paragraphs (b)(7) and 
(8).
    The revisions and additions read as follows:


Sec.  680.42   Limitations on use of QS, PQS, IFQ, and IPQ.

* * * * *
    (b) * * *
    (1) * * *
    (ii) * * *
    (A) Derived from PQS that was received by that person in the 
initial allocation of PQS for that crab QS fishery; or
    (B) Subject to an exemption for that IPQ pursuant to Sec.  
680.4(p); or
    (C) Used for custom processing at a facility that is:
    (1) Any shoreside crab processor located within the boundaries of a 
home rule, first class, or second class city in the State of Alaska in 
existence on June 29, 2009; or
    (2) Any stationary floating crab processor that is:
    (i) Located within the boundaries of a home rule, first class, or 
second class city in the State of Alaska in existence on June 29, 2009;
    (ii) Moored at a dock, docking facility, or at a permanent mooring 
buoy, unless that stationary floating crab processor is located within 
the boundaries of the city of Atka in which case that stationary 
floating crab processor is not required to

[[Page 16520]]

be moored at a dock, docking facility, or at a permanent mooring buoy; 
and
    (iii) Located within a harbor, unless that stationary floating crab 
processor is located within the boundaries of the city of Atka on June 
29, 2009, in which case that stationary floating crab processor is not 
required to be located within a harbor.
    (2) A person may not use IPQ in excess of 60 percent of the IPQ 
issued in the BSS crab QS fishery with a North region designation 
during a crab fishing year. Except that a person who:
* * * * *
    (ii) Has a 10 percent or greater direct or indirect ownership 
interest in the shoreside crab processor or stationary floating crab 
processor where that IPQ crab is processed will not be considered to 
use any IPQ in the BSS crab QS fishery with a North region designation 
if that IPQ is custom processed at a facility consistent with paragraph 
(b)(1)(ii)(C) of this section.
    (3) A non-individual entity holding PQS will be required to 
provide, on an annual basis, a list of persons with an ownership 
interest in the non-individual entity. This ownership list shall be 
provided to the individual level, will include the percentage of 
ownership held by each owner, and must be submitted annually with the 
complete application for a crab IFQ/IPQ permit.
    (4) A person will be considered to be a holder of PQS for purposes 
of applying the PQS use caps in this paragraph if that person:
    (i) Is the sole proprietor of an entity that holds PQS; or
    (ii) Is not a CDQ group and directly or indirectly owns a 10 
percent or greater interest in an entity that holds PQS.
    (5) A person that is not a CDQ group and holds PQS is limited to a 
PQS use cap that is calculated based on the sum of all PQS held by that 
PQS holder and all PQS held by any affiliate of the PQS holder. A 
person that is not a CDQ group and holds IPQ is limited to an IPQ use 
cap that is calculated based on the sum of all IPQ held by that IPQ 
holder and all IPQ held by any affiliate of the IPQ holder.
    (6) A CDQ group that holds PQS is limited to a PQS use cap that is 
calculated based on the sum of all PQS held, individually or 
collectively, by that CDQ group. A CDQ group that holds IPQ is limited 
to an IPQ use cap that is calculated based on the sum of all IPQ held, 
individually or collectively, by that CDQ group.
* * * * *
0
6. In Sec.  680.43, revise paragraph (a) to read as follows:


Sec.  680.43   Revocation of CVC and CPC QS.

    (a) Beginning July 1, [date 4 years after date of publication in 
the Federal Register], the Regional Administrator will revoke all CVC 
QS and CPC QS held by an individual who has not met the participation 
requirements set forth in Sec.  680.40(m). The Regional Administrator 
will revoke an individual's CVC QS or CPC QS in accordance with the 
procedures set forth in this section.
* * * * *
[FR Doc. 2024-04733 Filed 3-6-24; 8:45 am]
BILLING CODE 3510-22-P