Limited Access Management of Federal Fisheries In and Off of Alaska; Relieving Transfer Restrictions on Individual Fishing Quota Shares

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 676

[Docket No. 951002243-5243-01; I.D. 092695B]

RIN 0648-AG99

Limited Access Management of Federal Fisheries In and Off of

Alaska; Relieving Transfer Restrictions on Individual Fishing Quota

Shares

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 that would implement Amendment 32

to the Fishery Management Plan for the Groundfish Fishery of the Bering

Sea and Aleutian Islands Area and Amendment 36 to the Fishery

Management Plan (FMP) for Groundfish of the Gulf of Alaska (GOA). These

FMP amendments are necessary to facilitate full utilization of the

allocated resources managed under the Individual Fishing Quota (IFQ)

Program for the Pacific halibut and sablefish fixed gear fisheries in

and off of Alaska. This action is intended to relieve transfer

restrictions on Community Development Quota compensation quota shares

(CDQ compensation QS), thereby allowing transfers to persons who could

use the resulting IFQ to harvest the resource.

DATES: Comments must be received by November 24, 1995.

ADDRESSES: Comments must be sent to Ronald J. Berg, Chief, Fisheries

Management Division, Alaska Region, NMFS, 709 W. 9th Street, Room 453,

Juneau, AK 99801, or P.O. Box 21668, Juneau, AK 99802; Attention: Lori

J. Gravel. Copies of the Regulatory Impact Review (RIR) for this action

may also be obtained from this address.

FOR FURTHER INFORMATION CONTACT: John Lepore, 907-586-7228.

SUPPLEMENTARY INFORMATION:

Background

Beginning with the 1995 fishing season, the Pacific halibut

(Hippoglossus stenolepis) and sablefish (Anoplopoma fimbria) fixed gear

fisheries in the areas defined in 50 CFR 676.10 (b) and (c) have been

managed under the IFQ Program. The IFQ Program is a regulatory regime

designed to promote the conservation and management of these fisheries

and to further the objectives of the Magnuson Fishery Conservation and

Management Act and the Northern Pacific Halibut Act. Persons holding

quota share (QS), which represents a transferable harvest privilege,

receive an annual allocation of IFQ. Persons receiving an annual

allocation of IFQ are authorized to harvest, within specified

limitations, IFQ species. Further information on the implementation of

the IFQ Program, and the rationale supporting it, are contained in the

preamble to the final rule implementing the IFQ Program published in

the Federal Register, November 9, 1993 (58 FR 59375). Additions and/or

changes to the final rule implementing the IFQ Program were published

June 1, 1994 (59 FR 28281); August 24, 1994 (59 FR 43502), corrected

October 13, 1994 (59 FR 51874); October 7, 1994 (59 FR 51135); February

2, 1995 (60 FR 6448); March 3, 1995 (60 FR 11916); March 6, 1995 (60 FR

12152); and May 5, 1995 (60 FR 22307).

The CDQ Program was proposed in conjunction with the IFQ Program.

The CDQ Program apportioned designated percentages of the annual fixed

gear total allowable catch (TAC) for Pacific halibut and sablefish to

eligible western Alaska communities. These designated percentages were

intended to provide residents of eligible communities with stable,

long-term employment and to increase the participation of residents of

eligible communities in near-shore fisheries.

Apportioning designated percentages of the annual fixed gear TAC

for Pacific halibut and sablefish to eligible western Alaska

communities reduced the amount of that TAC available for harvest by

persons receiving annual allocations of IFQ. Therefore, CDQ

compensation QS were issued as partial compensation to persons in CDQ

areas who received QS because the amount of Pacific halibut and

sablefish available for

[[Page 53332]]

harvest with IFQ in CDQ areas was reduced.

Amendments 32 and 36 are intended to increase the remunerative

value of CDQ compensation QS by relieving the existing transfer

restrictions on initial recipients of those shares. Transfer

restrictions are relieved by (1) exempting some CDQ compensation QS

from the block provision and (2) allowing some CDQ compensation QS to

be transferred across catcher vessel length categories.

Exemption From the Block Provision

The block provision was added to the IFQ Program to prevent

excessive consolidation of fishing privileges. The analysis for the

block provision indicated that preventing excessive consolidation could

result in higher levels of harvesting employment. Higher levels of

employment for harvesters and the maintenance of diversity in fishing

operations participating in the IFQ program were the main goals of the

block provision.

Preventing excessive consolidation was accomplished by (1) issuing

as a block all initial allocations of QS that represented less than

20,000 lb (9 mt) of IFQ based on the 1994 TAC and (2) restricting

persons from holding more than two blocks for each IFQ species and IFQ

regulatory area. One unintended effect was the blocking of all CDQ

compensation QS.

Blocked CDQ compensation QS, especially small blocks (several

pounds to several hundred pounds of IFQ), would be difficult to market,

because any block, no matter how small, would be counted as part of the

two-block restriction. This difficulty in marketing would be contrary

to the purpose of CDQ compensation QS, which is to compensate persons

who received less QS in their traditional fishing areas because of

allocations of the TAC to the CDQ Program. Exempting CDQ compensation

QS from the block provision provides greater flexibility to persons who

plan to transfer their CDQ compensation QS.

Transfer Across Catcher Vessel Length Categories

The Council included catcher vessel length categories in the IFQ

Program because of significant public concern that harvest privileges

would be consolidated excessively into large vessel fishing operations.

By restricting transfers across catcher vessel length categories, the

Council ensured that the fixed gear fishing fleet would remain

relatively diversified and similar in overall character to the fleet

that existed prior to the program's implementation. The Council

determined that maintaining a diversified fleet is critical to the

economic and social well-being of coastal communities in Alaska that

rely, in part, on the small vessel fleet as a source of revenue.

This objective would not be contradicted by a 1-year period of

relief from the restriction against transferring across catcher vessel

length categories. Another vessel category designated by fish product

type (Category ``A''--freezer vessels of any length) was also included

in the IFQ Program; however, because Category ``A'' is not restricted

by length, it is not included in the 1-year period of relief. A large

portion of the CDQ compensation QS recipients are small vessel

operators based in coastal communities located on the Bering Sea.

Although these small vessel operators historically participated in the

Bering Sea and Aleutian Island Management Area (BSAI), they received

CDQ compensation QS in areas (e.g., GOA) where the fishery is

prosecuted by large vessel operators. In turn, these larger vessel

operators often were initially issued QS in the BSAI. The proposed

action would enable small vessel operators in the BSAI to transfer

their CDQ compensation QS in the GOA to larger vessel operators who, in

turn, could transfer their initially issued QS in the BSAI to the small

vessel operators. The coastal communities that rely on the small vessel

fleet would benefit by having IFQ in more accessible areas. Further,

this action would promote efficiency, because small vessel operators

would receive small vessel QS for the areas they normally fish and

large vessel operators would receive large vessel QS for the areas they

normally fish. Allowing exchanges across catcher vessel length

categories would eliminate the need for persons to use multiple vessels

of varying lengths to harvest their IFQ allocations. Also, the

exchanges would minimize vessel movement caused by IFQ allocations in

multiple areas. Finally, this action would not significantly change the

overall character of the fleet because (1) CDQ compensation QS accounts

for less than 3 percent of the total amount of QS and (2) the net gain

or loss in any one catcher vessel length category likely would be

insignificant.

Classification

Section 304(a)(1)(D) of the Magnuson Act requires NMFS to publish

regulations proposed by a Council within 15 days of receipt of an FMP

or an amendment of an FMP and regulations. At this time, NMFS has not

determined that either Amendment 32 to the BSAI FMP or Amendment 36 to

the GOA FMP (which these rules would implement) are consistent with the

national standards, other provisions of the Magnuson Act, and other

applicable laws. NMFS, in making that determination, will take into

account the data, views, and comments received during the comment

period.

An RIR was prepared for this proposed rule that describes the

management background, the purpose and need for action, the management

action alternatives, and the social impacts of the alternatives. The

RIR also estimates the total number of small entities affected by this

action, and analyzes the economic impact on those small entities.

Copies of the RIR can be obtained from NMFS (see ADDRESSES).

The analysis in the RIR shows that the economic effects of this

rule to the regulated community would be relatively minor. Accordingly,

the Assistant General Counsel for Legislation and Regulation of the

Department of Commerce certified to the Chief Counsel for Advocacy of

the Small Business Administration that this proposed rule would not

have a significant economic impact on a substantial number of small

entities under the Regulatory Flexibility Act.

This proposed rule has been categorically excluded from further

environmental assessment pursuant to NOAA Administrative Order 216-6,

section 6.02b.3.(b)(ii)(aa), because the actions pursuant to this

proposed rule do not result in a significant change in the original IFQ

Program.

This proposed rule will not change the collection of information

approved by the Office of Management and Budget (OMB), OMB Control

Number 0648-0272, for the Pacific halibut and sablefish IFQ Program and

OMB Control Number 0648-0269, for the Western Alaska CDQ Program.

This proposed rule has been determined to be not significant for

purposes of E.O. 12866.

List of Subjects in 50 CFR Part 676

Alaska, Fisheries, Reporting and recordkeeping requirements.

Dated: October 6, 1995.

Gary Matlock,

Program Management Officer, National Marine Fisheries Service.

For the reasons set out in the preamble, 50 CFR part 676 is

proposed to be amended as follows:

PART 676--LIMITED ACCESS MANAGEMENT OF FEDERAL FISHERIES IN AND OFF

OF ALASKA

1. The authority citation for 50 CFR part 676 continues to read as

follows:

[[Page 53333]]

Authority: 16 U.S.C. 773 et seq. and 1801 et seq.

2. In Sec. 676.21, paragraph (h) is added to read as follows:

Sec. 676.21 Transfer of QS and IFQ.

* * * * *

(h) Use of QS across catcher vessel categories. (1) Any person

issued CDQ compensation QS for a catcher vessel in an IFQ regulatory

area in which that person does not hold QS may use that CDQ

compensation QS on any catcher vessel regardless of catcher vessel

category (see Sec. 676.20). After CDQ compensation QS is transferred,

the QS is permanently assigned to the specific catcher vessel category

designated by the person to whom the QS is transferred.

(2) Paragraph (h)(2) of this section is effective through [insert

date 1 year from the effective date of the final rule]. Catcher vessel

QS transferred as partial or total consideration for the transfer of

CDQ compensation QS may be redesignated into a new catcher vessel

category if the CDQ compensation QS is transferred from the person to

whom the CDQ compensation QS was originally issued and the QS may have

been used on a vessel of any catcher vessel category pursuant to

paragraph (h)(1) of this section.

(3) For purposes of paragraph (h) of this section, CDQ compensation

QS is quota share issued as partial compensation for Pacific halibut

and sablefish harvest privileges foregone due to the CDQ Program, as

provided in Sec. 676.24(i).

3. In Sec. 676.22, paragraph (a) is revised to read as follows:

Sec. 676.22 Limitations on the use of QS and IFQ.

(a) The QS or IFQ specified for one IFQ regulatory area and one

vessel category must not be used in a different IFQ regulatory area or

vessel category, except as provided in paragraph (i)(3) of this

section, or in Sec. 676.21(h)(1).

* * * * *

4. In Sec. 676.24, paragraph (i)(3) is revised to read as follows:

Sec. 676.24 Western Alaska Community Development Quota Program.

* * * * *

(i) * * *

(3) Persons initially issued QS for IFQ regulatory areas in which a

portion of the TAC is allocated to the CDQ Program will be compensated

for halibut and sablefish harvest privileges foregone due to the CDQ

Program. Compensation issued to persons in an IFQ regulatory area in

which the persons do not hold QS will be issued as unblocked.

Compensation issued to persons in an IFQ regulatory area in which the

persons do hold QS will be added to their existing QS in that IFQ

regulatory area. The resulting QS amount will be blocked or unblocked

according to the criteria found at Sec. 676.20(a). Compensation will be

calculated for each non-CDQ area using the following formula:

QN=(QC x QSPN x RATE)/(SUMCDQ

-[RATE x SUMTAC])([1-RATE] x TACAVE)(QSPC

x [CDQPCT-RATE])

Where:

QN=quota share in non-CDQ area

QC=quota share in CDQ area

QSPN=quota share pool in non-CDQ area (as existing on January 31,

1995)

RATE=SUMCDQ/average of the TAC (1988-1994) for all CDQ and non-CDQ

areas

TACAVE=average of the TAC (1988-1994) for CDQ area

QSPC=quota share pool in CDQ area (as existing on January 31,

1995)

CDQPCT=CDQ percentage for CDQ area

SUMCDQ=sum [TACAVE x CDQPCT]

SUMTAC=sum [TACAVE]

* * * * *

[FR Doc. 95-25429 Filed 10-10-95; 3:43 pm]

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