[Federal Register Volume 78, Number 139 (Friday, July 19, 2013)]
[Proposed Rules]
[Pages 43125-43139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17162]
[[Page 43125]]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 660
[Docket No. 130528511-3592-01]
RIN 0648-BD31
Fisheries off West Coast States; Pacific Coast Groundfish Fishery
Management Plan; Commercial, Limited Entry Pacific Coast Groundfish
Fishery; Program Improvement and Enhancement
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: This proposed action would implement revisions to the Pacific
coast groundfish trawl rationalization program (program), a catch share
program, and includes clarifications of regulations that affect the
limited entry trawl and limited entry fixed gear sectors managed under
the Pacific Coast Groundfish Fishery Management Plan (FMP). This action
proposes to implement trailing actions for the program that either
implement original provisions of the program, including quota share
(QS) permit application and transfer regulations, increase flexibility
or efficiency, or address minor revisions/clarifications.
DATES: Submit comments on or before August 19, 2013.
ADDRESSES: You may submit comments on this document, identified by
NOAA-NMFS-2013-0086, by any of the following methods:
Electronic Submission: Submit all electronic public
comments via the Federal e-Rulemaking Portal. Go to
www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2013-0086, click the
``Comment Now!'' icon, complete the required fields, and enter or
attach your comments.
Mail: Submit written comments to William W. Stelle, Jr.,
Regional Administrator, Northwest Region, NMFS, 7600 Sand Point Way
NE., Seattle, WA 98115-0070; Attn: Ariel Jacobs.
Fax: 206-526-6736; Attn: Ariel Jacobs.
Instructions: Comments sent by any other method, to any other
address or individual, or received after the end of the comment period,
may not be considered by NMFS. All comments received are a part of the
public record and will generally be posted for public viewing on
www.regulations.gov without change. All personal identifying
information (e.g., name, address, etc.), confidential business
information, or otherwise sensitive information submitted voluntarily
by the sender will be publicly accessible. NMFS will accept anonymous
comments (enter ``N/A'' in the required fields if you wish to remain
anonymous). Attachments to electronic comments will be accepted in
Microsoft Word, Excel, or Adobe PDF file formats only.
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 William W. Stelle, Jr., Regional
Administrator, Northwest Region, NMFS, 7600 Sand Point Way NE.,
Seattle, WA 98115-0070, and to OMB by email to [email protected], or fax to 202-395-7285.
FOR FURTHER INFORMATION CONTACT: Ariel Jacobs, 206-526-4491; (fax) 206-
526-6736; [email protected].
SUPPLEMENTARY INFORMATION:
Background
In January 2011, NMFS implemented the trawl rationalization program
for the Pacific coast groundfish fishery's trawl fleet (see 75 FR
78344; Dec. 15, 2010). The program was adopted in 2010 through
Amendments 20 and 21 to the FMP and consists of an Individual Fishing
Quota (IFQ) program for the shorebased trawl fleet (including whiting
and non-whiting fisheries); and cooperative (coop) programs for the at-
sea mothership and catcher/processor trawl fleets (whiting only). Since
that time, the Pacific Fishery Management Council (Council) and NMFS
have been addressing implementation issues as they arise, some of which
are the subject of this proposed rule. This proposed action would
include the following, by category of (a) implementation of original
program, (b) increasing flexibility or efficiency, and (c) minor
revisions/clarifications:
(A) Implementation of Original Program
1. Establish quota share (QS) permit application and QS transfer
regulations,
(B) Increasing Flexibility or Efficiency
2. Clarify exceptions for lenders from control rules,
3. Change the opt-out requirement for quota pound (QP) deficits,
4. Eliminate double filing of co-op reports (November and March),
5. Revise first receiver site license requirements (FRSL),
including site inspection and expiration date,
6. Remove end of the year ban on QP transfers between vessel
accounts,
(C) Minor Revisions/Clarifications
7. Remove the term ``permit holder'' from groundfish regulations
and replace with ``vessel owner'', ``permit owner'', or ``owner of a
vessel registered to a limited entry permit'' as applicable,
8. Revise the process for a permit holder (vessel owner) to change
their vessel ownership,
9. Clarify that the processor obligation may be to more than one MS
permit,
10. Revise the mothership catcher vessel (MS/CV) endorsement
restriction given severability,
11. Clarify sorting requirement for full retention so ``predominant
species'' means only one species,
12. Clarify the accumulation limits calculation for compliance with
the annual QP vessel limit in vessel accounts,
13. Add a prohibition against failing to establish a new vessel
account, following a change in vessel ownership, prior to fishing in
the Shorebased IFQ program, and
14. Add a prohibition against landing fish from an IFQ trip to a
first receiver without a valid FRSL.
Each of these items is described in greater detail below, including
sector(s) of the fishery impacted by the item, rationale for the
proposed change, and a discussion of any relevant Council action
pertaining to the item.
1. Establish QS Permit Application and QS Transfer Regulations
Proposed implementation of QS transfer regulations would only
affect the Shorebased IFQ sector of the Pacific Coast Groundfish
fishery. The ability to transfer, after the first two years of the
program, QS between participants in the Shorebased IFQ sector was
approved under the original provisions of the program (see 75 FR
78344), however due to the Reconsideration of the Initial Allocation of
Pacific whiting (whiting) to the Shoreside IFQ and Mothership sectors
of the fishery, NMFS delayed QS transfer until January 1, 2014 for all
species with the exception of widow rockfish (see 77 FR 45508 and 78 FR
18879). By implementing QS transfer regulations, including an
application process for new entrants intending to purchase QS, this
proposed action will increase flexibility and efficiency for members of
this sector, and provide a pathway for new entrants to establish QS
permits/accounts and purchase QS.
The Council selected a preliminary preferred alternative (PPA) at
its March 2012 meeting to delay the implementation of QS transfer and
[[Page 43126]]
divestiture of QS held in excess of the accumulation limits in the
shoreside IFQ sector, as well as severability and divestiture in the
Mothership sector, pending resolution of the whiting reconsideration.
At its September 2012 meeting, the Council recommended that the QS
transfer and divestiture periods for the shoreside IFQ sector begin on
January 1, 2014 with the deadline to divest shares in excess of the
accumulation limits extended to December 31, 2015, and that MS/CV
severability begin on September 1, 2014, with a delay of the deadline
to divest endorsements and catch history assignments in excess of the
accumulation limits extended to August 31, 2016. Therefore, this rule
proposes to further develop the process for QS transfers and
applications.
NMFS proposes to add a QS permit application process at Sec.
660.140(d)(2)(iii) that would allow each unique QS permit applicant to
submit a complete application form, including a Trawl Identification of
Ownership Interest Form, between January 1 and November 30 of each
year. This application period aligns with the proposed QS trading
period below. Upon approval of a QS permit application, NMFS would
issue a QS permit and associated QS account with a starting QS
percentage balance of zero for each IFQ and individual bycatch quota
(IBQ) species. If a QS permit application were denied, an initial
administrative determination (IAD) would be mailed to the applicant,
who could then appeal the IAD as described at Sec. 660.25(g), subpart
C.
NMFS also proposes regulations to more clearly define the process
for transfers of QS percentages. All QS permit owners with a renewed QS
permit would be able to permanently transfer percentages of QS to other
QS permit owners through their online QS account between January 1 and
November 30 of each year. Like QP transfers, any transfer of QS would
need to be both initiated by the transferor and accepted by the
transferee to be a complete transaction. QS would be transferred in
increments to the thousandth of a percent (0.001 percent). Any transfer
of QS would be registered in the QS account in the current year, but
would not be effective for the purposes of allocating QP until the
start of the following year. For example, if QS Permit Owner A sold
1.000 percent of Pacific whiting to QS Permit Owner B, the sale of QS
would be effective at the time the transfer was accepted by QS Permit
Owner B, but no QP would be associated with the sale (QP cannot be
transferred between QS accounts--only to vessel accounts). QS Permit
Owner A would continue to receive any allocations of Pacific whiting
pounds based on the 1.000 percent sold for the remainder of the year.
On November 30 of that year (the end of the QS trading period), if QS
Permit Owner B still owned the 1.000 percent of Pacific whiting that he
purchased from QS Permit Owner A, the QS permit mailed by NMFS would
reflect the updated amount of Pacific whiting owned for the following
year, and any QP allocated to that 1.000 percent in the following year
would be issued to QS Permit Owner B.
Essentially, the QS permit would reflect the amount of QS owned for
the purposes of allocating QP in a current year. Regardless of how many
QS transfers are made in a given year by the original owner of QS (as
given on the QS permit, effective January 1), the original owner will
be allocated the QP associated with those percentages. Not until the
start of the following year will the new owner(s) of those percentages
have the percentages listed on their QS permit and receive the
allocation of QP associated with those percentages in their QS account.
Additionally, revisions are proposed for the regulations at Sec.
660.140(d)(3)(i)(C) and (d)(3)(ii)(B)(2) that clarify the renewal of QS
permits. Currently, all QS permit owners must renew online through the
QS account during the October 1-November 30 renewal period each year.
Any QS permit owner who does not renew their permit during the renewal
period will have their QS account inactivated, and will not receive any
allocations of QP based on their QS percentages. The QS permit owner
cannot renew their QS permit until the next October 1-November 30
renewal period. Two changes to these current regulations are proposed:
(1) Prohibit the transfer of QS to and from QS permits/accounts that
have not been renewed, and (2) implement a paper renewal application
process for QS permit owners who did not renew their QS permit online
during the October 1--November 30 renewal period. The first proposed
change to prohibit the transfer of QS to and from QS permits/accounts
that have not been renewed aligns with the current process of
inactivating accounts associated with non-renewed QS permits. The
second proposed change would allow QS permit owners who did not renew
their QS permit online during the previous year's renewal period to
submit a paper renewal package (QS permit renewal form and Trawl
Identification of Ownership Interest Form) after January 1 of the
following year. If the paper QS permit renewal was approved in the
current year, the QS permit owner would be able to transfer percentages
of QS from the time they renew until November 30 of that year. NMFS
would not allocate any QP to the QS account until the following
calendar year provided they renew during the October 1 to November 30
renewal period of the current year.
For example, if QS permit owner A failed to renew online for the
2014 calendar year by November 30, 2013, QS permit owner A would not be
allocated any 2014 QP, and could not transfer QS. If QS permit owner A
renews via paper renewal on February 1, 2014, and is approved, they
could transfer QS from the time of approval until November 30, 2014; QS
permit owner A would not be allocated any QP for 2014. If QS permit
owner A renews online for the 2015 calendar year by November 30, 2014,
QS permit owner A would be allocated 2015 QP, and could transfer QS in
2015.
2. Clarify Exceptions for Lenders From Control Rules
This proposed action would only affect the Shorebased IFQ sector of
the Pacific Coast Groundfish fishery. This item was addressed by the
Council at the March and November 2012 Council meetings. At the March
2012 meeting, the Council recommended language that clarified which
entities could qualify for exemption from the control rules in response
to questions from fishery participants. Further revisions to the
control rules were proposed by the Council at the November 2012
meeting.
The current regulations at Sec. 660.140(d)(4)(iii) define control
rules for eight categories of participants, with exceptions to three of
the categories (Sec. 660.140(d)(4)(iii)(E-G)) for ``banks and other
financial institutions that rely on QS or IBQ as collateral for
loans''. The Council motion proposes to add language to the control
rules specifying that to qualify as a bank or financial institution for
purposes of this paragraph the entity must be regularly or primarily
engaged in the business of lending and not engaged in or controlled by
entities whose primary business is the harvest, processing, or
distribution of fish or fish products. Additionally, the proposed
language would require that any lender that wishes to qualify for the
exception, and is not a state or federally chartered bank or other
financial institution, must disclose to NMFS the identity and share of
interest of any entity with a two percent or more ownership interest in
the lender, in a manner similar to what is required for the Trawl
Identification of Ownership Interest Form as described at Sec.
660.140(d)(4)(iv). Additional
[[Page 43127]]
revisions were proposed to make it clear that lenders could access
available QP during foreclosure, thereby reducing lenders' risk, and
making it more likely that there will be adequate access to financing,
and to best facilitate lending in the fishery by providing lenders with
security so that they will not run afoul of the control rules by using
QS as collateral, and that lenders will be able to protect their
interest in that collateral by preventing sale, lease, or other
disposition of the QS, QP, or IBQ in the event of a foreclosure.
Therefore NMFS proposes, in accordance with the Council
recommendation, to add subparagraphs (1) through (3) at Sec.
660.140(d)(4)(iii)(G) that clarify the existing exception for banks and
other financial institutions that rely on QS or IBQ as collateral for
loans. NMFS proposes that to qualify for this exception, a bank or
other financial institution must be regularly or primarily engaged in
the business of lending and not engaged in or controlled by entities
whose primary business is the harvesting, processing, or distribution
of fish or fish products. NMFS further proposes that any entity that is
not a state or federally chartered bank or financial institution, must
submit a letter requesting the exception, and disclose the identity and
interest share of any shareholder with a 2% or more ownership interest
in the lender through submission of the Trawl Identification of
Ownership Interest Form; NMFS will only accept complete applications.
Additionally, NMFS proposes to add the revised exception to paragraph
(C) at Sec. 660.140(d)(4)(iii), to remove the existing exception from
paragraphs (E) and (F), and to add the clause ``with the exception of
those activities allowed under paragraphs C and G'' at the end of
paragraphs (A), (B), (D), (E), (F), and (H).
3. Change the Opt-Out Requirement for QP Deficits
This proposed action would only affect the Shorebased IFQ sector of
the Pacific Coast Groundfish fishery. This item was addressed by the
Council at the March and April 2012 Council meetings. At its April 2012
meeting, the Council recommended changing the opt-out requirement for
QP deficits lasting more than 30 days in order to allow vessels to
rejoin the fishery after deficits are cleared. Under existing
regulations, any vessel with a documented deficit is prohibited from
fishing groundfish and is required to cure the deficit within 30 days.
If a vessel carries a deficit for more than 30 days and the amount of
the deficit is within the carryover allowance, then the vessel can stay
within compliance of the program by opting out of the fishery for the
remainder of the year. Vessels that do not opt out, but instead incur a
violation, are allowed to rejoin the fishery as soon as the deficit is
cured. Deficits greater than the carryover allowance must be brought to
within the carryover allowance before the 30-day clock expires, or the
vessel will incur a violation.
The 30-day clock with the provision allowing vessels to opt-out for
the remainder of the year was originally intended to encourage vessels
to cover their overages sooner rather than later. A variety of
circumstances may arise under which a vessel incurs a deficit. Current
regulations give the vessel two choices, each with potentially
substantial adverse consequences: (1) Incur a violation, including the
penalty, and preserve the opportunity to participate later in the year,
or (2) leave the fishery and forgo all remaining opportunity for the
year (unused QP might be sold off to other vessels). Vessels that have
carried a known deficit for more than 30 days may avoid a violation by
opting out of the fishery for the remainder of the year (so long as the
deficit is less than the carryover allowance).
As described above, this provision creates a situation in which a
vessel that incurs a violation is allowed to continue in the fishery
while a vessel that stays in compliance must opt out for the remainder
of the year. Furthermore, to date there have been three events where a
vessel was in deficit and approached the 30-day time period before
covering their deficit. However, none of them opted-out of the fishery
and all were able to cover their deficits within 30 days. While vessels
have not been using the opt-out provision, it is uncertain whether or
not they have had to pay higher prices for QP in order to avoid being
forced into the opt-out/violation choice. Some view this situation as
inequitable. Therefore NMFS proposes to change the regulations at Sec.
660.140(b)(1)(iii) and (e)(5)(ii)(A) such that once a vessel has cured
a deficit, it may rejoin the fishery, without incurring a violation.
NMFS also proposes to remove the phrase ``however, the vessel owner
must notify OLE of the owner's intent to invoke the carryover provision
to cover the deficit'' from the end of paragraph (A). This requirement
is no longer necessary because surplus carryover is not credited to
vessel accounts until the spring, and therefore vessel owners with a
deficit at the end of a calendar year would have no way to cover that
deficit with surplus carryover pounds within the 30-day limit. The
following table describes the changes proposed by these revisions.
[GRAPHIC] [TIFF OMITTED] TP19JY13.107
[[Page 43128]]
4. Eliminate Double Filing of Coop Reports
This proposed action would only affect the Mothership (MS) and
Catcher/Processor (C/P) sectors of the Pacific Coast Groundfish
fishery. This item was addressed by the Council at the March and April
2012 Council meetings. At its April 2012 meeting, the Council
recommended eliminating the required annual filing of a preliminary
coop report in November, leaving in place the requirement that a final
report be submitted in March of the following year.
Currently both MS and C/P coops are required to submit to the
Council a preliminary annual report in November and to NMFS a final
annual report by March 31 of the following year. Because the fishery is
not completed on time for the November meeting and a subsequent final
report must be provided by March 31 of the following year, the
preliminary report is not necessary. Therefore, NMFS proposes to revise
the regulations at Sec. 660.113(c)(3) and at Sec. 660.113(d)(3) to
require that both the MS and C/P coops submit an annual, final report
to both NMFS and the Council in March of the following year.
5. Revise FRSL Requirements, Including Site Inspection and Expiration
Date
This proposed action would only affect the Shorebased IFQ sector of
the Pacific Coast Groundfish fishery. This item was addressed by the
Council at the March and April 2012 Council meetings. At its April 2012
meeting, the Council recommended making several changes to the FRSL
regulations in order to make the application process more efficient, to
reduce costs of the program, and to decrease the burden on applicants.
Therefore, NMFS proposes to make the following revisions at Sec.
660.140(f)(5): (1) All FRSL will be valid from the effective date
identified on the license until June 30; (2) each FRSL holder must have
a site inspection for the site given on the license at least once every
three years (instead of annually, as currently required); (3) NMFS may
require a site inspection more frequently than once every three years
as it deems necessary; (4) NMFS may require the presence of a FRSL
holder representative at a site inspection, and a site inspection may
not be conducted if the FRSL holder fails to make available such a
requested representative at the time of inspection; and (5) NMFS may
require changes to the catch monitor (CM) plan, and may require that
the FRSL holder demonstrate such changes have been implemented at the
site prior to acceptance of the FRSL CM plan, which is a requirement
for a complete application for a FRSL.
NMFS also proposes further clarifications to the re-registration
process at Sec. 660.140(f)(6). First receivers must submit a re-
registration application annually, regardless of whether a site
inspection is required in that year. For all FRSL holders who submit a
complete re-registration application, NMFS will notify those FRSL
holders who will be required to have a site inspection during that
year. NMFS will mail a FRSL re-registration application to existing
license holders on or about February 1 each year. All FRSL will expire
on June 30, and those FRSL holders who want to continue to receive IFQ
landings without a lapse in their license and have their re-registered
license effective beginning on July 1 must submit their complete re-
registration application by April 15. For those FRSL holders who submit
a re-registration application after April 15 of a given year, NMFS may
not be able to issue the license by July 1 of that year, resulting in a
lapse of their current FRSL.
6. Remove End of the Year Ban on QP Transfers Between Vessel Accounts
This proposed action would only affect the Shorebased IFQ sector of
the Pacific Coast Groundfish fishery. This item was addressed by the
Council at the March and April 2012 Council meetings. At its April 2012
meeting, the Council recommended that the December 15-31 prohibition on
QP transfers between vessel accounts be removed. Under current
regulations at Sec. 660.140(e)(3)(iii)(B), the transfer of QP between
vessel accounts was prohibited from December 15-31 in order to allow
NMFS to complete any needed end-of-the-year account reconciliation.
However, over 2011 and through the PIE 1 rule (effective January 1,
2012), NMFS developed and implemented an end-of-the-year account
reconciliation process that doesn't occur during December 15-31, but
occurs early the following year once more complete catch data are
available. Therefore, NMFS proposes that the regulations at Sec.
660.140(e)(3)(iii)(B) be revised to remove the December 15-31 ban on QP
transfers between vessel accounts.
7. Remove the Term ``permit holder'' and Change to ``vessel owner'',
``permit owner'', or ``owner of a vessel registered to a limited entry
permit'' as Applicable
This proposed action would affect all members of the commercial,
limited entry Pacific Coast Groundfish fishery. In regulation, the term
``permit holder'' is the owner of a vessel registered to a limited
entry permit. This item was addressed by the Council at the March and
April 2012 Council meetings. At its April 2012 meeting, the Council
recommended that due to confusion among the regulated public regarding
who is responsible for regulatory compliance, the term ``permit
holder'' should be removed from regulations and replaced by ``vessel
owner'' or ``owner of a vessel registered to a limited entry permit.''
In some cases, the regulated public has used the term ``permit owner''
and ``permit holder'' interchangeably, which is not accurate. According
to regulations, the permit owner registers their permit to be fished by
a particular vessel, causing the vessel owner to be the holder of the
permit. ``Permit holder'' and ``vessel owner'' are used interchangeably
in regulation while the public uses the term ``permit holder'' and
``permit owner'' interchangeably--causing confusion. In an effort to
make the regulations more clear, NMFS proposes to remove the definition
for ``permit holder'' at Sec. 660.11, and to replace ``permit holder''
at Sec. 660.25(b)(3)(ii) with ``vessels registered to limited entry
permits''; to replace ``permit holder'' with ``vessel owner'' in Sec.
660.25(b)(3)(iv)(C)(4), Sec. 660.25(b)(4) introductory text, Sec.
660.25(b)(4)(iv) introductory text, Sec. 660.25(b)(4)(iv)(A) and (C),
Sec. 660.25(b)(4)(v)(D), Sec. 660.25(b)(4)(vi)(B), Sec.
660.25(b)(4)(vii)(A) through (C), (g)(1), in Sec. 660.213(d)(2), and
in Sec. 660.231(b)(1); to replace ``permit holder'' with ``vessel
holding the permit'' in Sec. 660.25(b)(4)(iv)(B); and, to replace
``permit holder'' in Sec. 660.150(d)(1)(iii)(A)(1)(i) with ``permit
owners''.
8. Revise the Process for a Permit Holder (Vessel Owner) To Change
Their Vessel Ownership
This proposed action would affect all members of the commercial,
limited entry Pacific Coast Groundfish fishery. This item was addressed
by the Council at the March and April 2012 Council meetings. At its
April 2012 meeting, the Council recognized that the regulations at
Sec. 660.25(b)(4)(iv) do not clearly describe the process for a permit
holder (vessel owner) to request a change in vessel ownership. NMFS
proposes to revise these regulations to clarify the process for a
vessel owner to request a change in vessel ownership through the
Fisheries Permits Office (FPO). The request would include a requirement
for a copy of the new vessel registration documentation (USCG or
state). Based
[[Page 43129]]
on this provision and review of the regulations, NMFS proposes to
revise and clarify not only the process to change the ownership of a
vessel (i.e., change in vessel owner), but also the process to change
the permit registered to a vessel and to change the owner of a limited
entry permit. NMFS proposes to revise Sec. 660.25(b)(4)(iv), (v),
(vii), and (viii) accordingly.
9. Clarify That the Processor Obligation Could Be to More Than One MS
Permit
This proposed action would affect all members of the Mothership
sector of the commercial Pacific Coast Groundfish fishery. This item
was addressed by the Council at the March and April 2012 Council
meetings. At its April 2012 meeting, the Council recommended that the
regulations regarding the processor obligation should be clarified such
that a permit with multiple MS/CV endorsements may obligate each
endorsement and associated catch history assignment (CHA) to an MS
permit. For example, a trawl permit with two MS/CV endorsements could
obligate each endorsement to a different MS permit. Each distinct MS/CV
endorsement and associated CHA may only be obligated to one MS permit.
This clarification is a logical extension of allowing multiple
endorsements to be registered to a single permit and of the regulations
at Sec. 660.150(c)(2)(i)(A) on annual MS sector sub-allocations and at
Sec. 660.150(g)(2)(iv)(D) on multiple MS/CV endorsements that allow a
permit with multiple MS/CV endorsements and associated CHAs to be
registered to more than one coop or to both the coop and non-coop
fishery (76 FR 74725, published on December 1, 2011). Therefore, NMFS
proposes to revise regulations at Sec. 660.150(c)(7)(i) in order to
clarify that the processor obligation could be to more than one MS
permit. Additionally, NMFS proposes to revise regulations at Sec.
660.150(g)(2)(iv)(D) in order to clarify the process for a permit with
multiple MS/CV endorsements that intends to participate in the non-coop
fishery. NMFS also proposes to revise regulations at Sec.
660.25(b)(3)(vii) to remove MS/CV endorsements from the list of
endorsements that cannot be transferred separate from the limited entry
permit.
10. Revise MS/CV Endorsement Restriction Given Severability
This proposed action would affect all members of the Mothership
sector of the commercial Pacific Coast Groundfish fishery. This item
was not discussed at a Council meeting, but is a minor revision to the
regulations proposed by NMFS. The final Reconsideration of the
Allocation of Whiting Rule (78 FR 18879) was effective on April 1, 2013
and allowed limited entry trawl permit holders in the Mothership
fishery to request a change (or transfer) of MS/CV endorsement and its
CHA beginning September 1, 2014 and required MS/CV-endorsed limited
entry trawl permit owners to divest themselves of ownership in permits
in excess of the accumulation limits by August 31, 2016. NMFS proposes
to revise regulations at Sec. 660.25(b)(3)(vii) to remove MS/CV
endorsements from the list of endorsements that cannot be transferred
separate from the limited entry permit.
11. Clarify Sorting Requirement for Full Retention so ``predominant
species'' Means Only One Species
This proposed action would affect the Pacific Coast Groundfish
trawl fishery. This item was not discussed at a Council meeting, but is
a minor revision to the regulations proposed by NMFS. Currently, the
sorting and weighing requirements for full retention fisheries are not
clear regarding use of the term ``predominant species''. Currently the
regulations at Sec. 660.112(b)(2)(ii), Sec. 660.130(d)(2)(i), Sec.
660.140(j)(2)(viii), and Sec. 660.140(j)(2)(ix) specify sorting
requirements for fish processed by IFQ first receivers. Generally catch
must be sorted prior to first weighing, however there is an exception
provided to vessels declared into the Shorebased IFQ Program such that
they may weigh catch prior to sorting, and then all but the
``predominant species'' must be reweighed. Use of the term
``predominant species'' has created confusion because ``species'' may
be interpreted to be singular or plural, however as the term is used in
this exception, there can only be a single predominant species
identified prior to re-weighing, post-sorting, or it becomes extremely
difficult to derive the weight of the predominant species by deducting
the combined weight of incidental catch from total catch weight. This
exception is also provided to the at-sea sectors of the Pacific whiting
fishery at Sec. 660.130(d)(3)(i). For fish processed by Pacific
whiting at-sea processing vessels, these regulations specify that catch
may be weighed prior to sorting and that then all but the predominant
species must then be reweighed. The use of ``predominant species'' in
this section of regulations should also refer to a single predominant
species for the reasons described above for the Shorebased IFQ Program.
Therefore, ``predominant species'' should refer to a single
species, for example in the case of whiting directed trips, it should
refer to Pacific whiting. NMFS proposes to revise the regulations at
Sec. 660.112(b)(2)(ii), Sec. 660.130(d)(2)(i), Sec.
660.130(d)(3)(i), Sec. 660.140(j)(2)(viii), and Sec.
660.140(j)(2)(ix) to clarify that the term ``predominant species''
refers to a single species.
In reviewing the associated regulatory paragraphs on sorting
requirements, it was discovered that PIE 1 (which revised the sorting/
weighing requirement for non-whiting IFQ) failed to revise this
paragraph. NMFS also proposes a minor revision at Sec. 660.12(a)(8) to
remove the reference to ``Pacific whiting sectors'' because the
exception applies to non-whiting IFQ as well. This is a minor change
resulting from an oversight in PIE 1 (see 76 FR 54888). NMFS also
proposes to revise Sec. 660.130(d)(2)(ii) for this same reason and
remove ``Pacific whiting'' from before ``IFQ trip''.
12. Clarify Accumulation Limits Calculation for Compliance With the
Annual QP Vessel Limit in Vessel Accounts
This proposed action would affect the Shorebased IFQ sector of the
Pacific Coast Groundfish fishery. This item was not discussed at a
Council meeting, but is a minor revision to the regulations proposed by
NMFS. The current description of how annual QP vessel limits are
tracked is misleading. NMFS proposes to revise regulations at Sec.
660.140(e)(4)(i) to clarify that the QP counted toward the annual
allowable vessel limit is calculated as all QP transferred into a
vessel account less all QP transferred out of a vessel account; pending
transfers are not included in this calculation until the transaction
has been finalized. The method for calculating the annual vessel limit
must be independent of catch (used QP) because vessel accounts in
deficit could potentially exceed the vessel limit. The calculation for
daily vessel limits (unused QP vessel limits) remains the same.
13. Add a Prohibition Against Failing To Establish a New Vessel Account
Following a Change in Vessel Ownership and Prior to Fishing in the
Shorebased IFQ Program
This proposed action would affect the Shorebased IFQ sector of the
Pacific Coast Groundfish fishery. This item was not discussed at a
Council meeting, but is a minor revision to the regulations proposed by
NMFS. Current regulations at Sec. 660.140(e)(2)(ii) and (e)(3)(ii)
state that any change in vessel ownership, including a change in the
legal name of the vessel owner(s), will require the new
[[Page 43130]]
owner to register with NMFS for a vessel account. When the owner of a
vessel changes, the new owner must request a new vessel account in
their name and acquire QP, and may not fish against QP in the old
owner's vessel account. Consistent with these regulations, NMFS
proposes to add a corresponding prohibition at Sec. 660.112(b) against
failing to establish a new registered vessel account in the name of the
current vessel owner following a change in ownership of a vessel and
prior to fishing in the Shorebased IFQ Program with that vessel.
14. Add a Prohibition on Landing Fish From an IFQ Trip to a First
Receiver Without a Valid FRSL
This proposed action would affect the Shorebased IFQ sector of the
Pacific Coast Groundfish fishery. This item was not discussed at a
Council meeting, but is a minor revision to the regulations proposed by
NMFS. Current regulations at Sec. 660.140(f)(1) state that the FRSL
authorizes the holder to ``to receive, purchase, or take custody,
control, or possession of an IFQ landing.'' Consistent with this
regulation, NMFS proposes to add a corresponding prohibition at Sec.
660.112(b) against landing groundfish taken and retained during an IFQ
trip, from the vessel that harvested the fish, to a first receiver that
does not hold a valid first receiver site license for the physical
location where the IFQ landing occurred.
Classification
Pursuant to section 304(b)(1)(A) of the MSA, the NMFS Assistant
Administrator has determined that this proposed rule is consistent with
the Pacific Coast Groundfish FMP, other provisions of the MSA, 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.
A Regulatory Impact Review (RIR) was prepared on the action in its
entirety and is included as part of the initial regulatory flexibility
analysis (IRFA) on the proposed regulatory changes. The IRFA and RIR
describe the impact this proposed rule, if adopted, would have on small
entities. A description of the action, why it is being considered, and
the legal basis for this action are contained at the beginning of this
section in the preamble and in the SUMMARY section of the preamble. A
copy of the IRFA is available from NMFS (see ADDRESSES) and a summary
of the IRFA, per the requirements of 5 U.S.C. 603(a), follows:
These regulations are largely administrative in nature and their
economic effects are minor in the context of the entire program. In
sum, in addition to minor clarifications to terms used within the
existing regulations and minor changes in existing application and
renewal processes, these proposed regulations: (1) Establish the
administrative QS application and trading processes that support the
quota share trading regulations that already have been established; (2)
reduce the annual reporting burden on the two at-sea coops--instead of
providing a preliminary report and final report, the only requirement
is to provide a final report; (3) reduce the annual reporting burden on
First Receivers as the mandatory scheduling of First Receiver Site
License inspection is being shifted from an annual inspection cycle to
a triennial cycle unless issues arise; (4) provide an additional two
weeks to IFQ fishermen to trade their QPs; (5) increase fishermen's
flexibility by allowing fishermen that opt out of the fishery for the
year, a chance to return to the fishery in that same year should they
resolve their deficits; and, (6) increase the availability of loans to
fishermen by providing non-traditional lenders increased opportunity to
make additional loans should they be inhibited by the ownership and
control limits.
This proposed action includes regulations that implement the
original program, increase the flexibility of the program, or make
minor revisions/clarifications to the regulations. Relative to the
other regulations being proposed, the following will have an impact on
the operation of the fishery. The proposed regulations include the
administrative processes that implement QS transfer regulations that
already have been established. These processes facilitate the trading
of QS so that major benefits of the Program can be achieved. (The major
economic benefits of this Program are described at 75 FR 78365.) The
regulatory reporting burden of existing regulations is being reduced.
The mandatory scheduling of First Receiver Site License inspection is
being shifted from an annual inspection cycle to a triennial cycle
unless issues arise. The annual reports required by each of the two at-
sea co-ops reduced from two reports to one per year. Fishermen are
being given more time to fish and more options to resolve any deficits
they incur. Current rules include a process by which fishermen can opt-
out of the fishery for the year when faced with a deficit in their
accounts. This process is revised to allow fishermen to re-enter the
fishery within the year if they have resolved their deficit though the
transfer of additional QPs into their vessel account. To facilitate
NMFS' end of the year reconciliation processes, there was a ban on
trading QPs from December 15 to December 31. Because it has confidence
in its accounting system, NMFS is now lifting this ban so QPs can be
traded all year round. The proposed regulations enhance the ability of
non-traditional lenders to provide loans to the industry. To prevent
excessive control of quota shares or quota pounds by a participant,
NMFS developed various regulations. Within these regulations,
exceptions were made for banks or financial institutions that are state
or federally chartered as these entities are expected to be regularly
or primarily engaged in the business of lending and not engaged in or
controlled by entities whose primary business is the harvesting,
processing, or distribution of fish or fish products. However, there
are non-traditional financial institutions such as non-profit revolving
loan programs that are not state or federally chartered. These
regulations propose a process where, on a case-by-case basis, these
non-traditional lenders can request an exception to the control limits.
While this rule has minor clarifications that affect all limited
entry permit holders and vessels, this rule mainly affects the
following sectors/programs: Shorebased Individual Fishing Quota (IFQ)
Program--Trawl Fishery, Mothership Coop (MS) Program--Whiting At-sea
Trawl Fishery, and Catcher-Processor (C/P) Coop Program--Whiting At-sea
Trawl Fishery. The Shorebased IFQ fishery is managed with individual
fishing quotas for most groundfish species, including whiting.
Annually, QP are allocated from the shorebased sector allocation based
on the individual QS of each QS owner. (QP is expressed as a weight and
QS is expressed as a percent of the shorebased allocation for a given
species or species group.) QP may be transferred from a QS account to a
vessel account or from one vessel account to another vessel account.
Vessel accounts are used to track how QP is harvested since QP is used
to cover catch (landings and discards) by limited entry trawl vessels
of all IFQ species/species groups. Shorebased IFQ catch must be landed
at authorized first receiver sites. The IFQ whiting QS were allocated
to a mixture of limited entry permit holders and shorebased processors.
One non-profit organization received QS based on the ownership of
multiple limited entry permits. The MS coop sector can consist
[[Page 43131]]
of one or more coops and a non-coop subsector. For a MS coop to
participate in the Pacific whiting fishery, it must be composed of MS
catcher-vessel (MS/CV) endorsed limited entry permit owners. Each
permitted MS coop is authorized to harvest a quantity of whiting based
on the sum of the catch history assignments for each member's MS/CV
endorsed permit identified in the NMFS accepted coop agreement for a
given calendar year. Each MS/CV endorsed permit has an allocation of
whiting catch based on its catch history in the fishery. The catch
history assignment (CHA) is expressed as a percentage of whiting of the
total MS sector allocation. Currently the MS sector is composed of only
a single coop. The C/P coop program is a limited access program that
applies to vessels in the C/P sector of the Pacific whiting at-sea
trawl fishery and is a single voluntary coop. Unlike the MS coop
regulations where multiple coops can be formed around the CHAs of each
coop's member's endorsed permit, the single C/P coop receives the total
Pacific whiting allocation for the C/P sector. Only C/P endorsed
limited entry permits can participate in this coop. The Shorebased IFQ
Program is composed of 138 QS permits/accounts, 144 vessel accounts,
and 51 first receivers. The MS coop fishery is composed of six
mothership processor permits and 35 MS/CV endorsed permits The C/P coop
is composed of 10 catcher-processor permits. In 2012, these fleets
generated about $79 million in ex-vessel revenue: $11 million by the MS
sector, $16 million by the CP sector, and $52 million by the Shorebased
IFQ Program.
This proposed rule also proposes changes concerning exemptions for
lenders from the control rules and revisions to the opt-out provisions.
In Amendment 20 to the FMP, limits (by species group and area) on the
amount of QS an individual can control (i.e. control limits) and limits
on the amount of QPs that may be registered to a vessel for use in a
given year (i.e. accumulation limits--sometimes referred to as species
caps). The intent of these limits is to prevent excessive control of QS
or QP by a participant. The MSA specifically requires the establishment
of a maximum share that each limited access privilege holder is
permitted to hold, acquire, or use. In defining the term ``control''
banks and other financial institutions were excluded. Although banks
and other financial institutions may rely on QS or IBQ as collateral
for loans they are not expected to restrict any activity related to QS,
QP, or IBQ in ways that constitute ``control.'' However, there is
concern about both whether the entities qualifying for this exception
are sufficiently defined-especially for non-traditional lenders such as
nonprofit revolving loan funds.
Public comment received from the California Fisheries Fund (CFF)
illustrates the issue (http://www.pcouncil.org/wp-content/uploads/E7c_PC_NOV2011BB.pdf). ``We have already begun to make loans to
participants in the groundfish trawl IFQ fishery for vessel purchase
and upgrades and gear upgrades/modifications. Two of our loans (one for
vessel upgrades and one for gear purchase) are secured in part by QS.
We expect to make further loans for quota leasing/acquisition and to
aid young new participants in entering the fishery. Many of these loans
will likely be secured (in whole or in part) with quota shares or quota
pounds as collateral. Unfortunately, proposed language under
consideration by the Council exempts only state- and federally-
chartered institutions from the control caps. This language would not
allow CFF, RSF Social Finance (www.rsfsocialfinance.org) and perhaps
other likely lenders to avail themselves of the safe harbor. We are
concerned that our lending would be seriously curtailed by such
language. While we are concerned about exceeding the control cap
generally, CFF would be even more likely to exceed the control cap on a
species-by-species basis. Since not all permits were allocated quota on
an equal basis, as few as 2 permits pledged as collateral could push us
over those species caps. A good example of this is Yelloweye rockfish--
several permits appear to have been allocated more than 1% QS and the
control cap is only 2.6%.''
Given the nature and variety of financial institutions, it is
difficult to develop an explicit exception that encompasses non-
traditional lenders. Therefore, NMFS is proposing an exception process
for financial institutions that are not banks. A bank or financial
institution is defined as a state or federally chartered entity that
must be regularly or primarily engaged in the business of lending and
not engaged in or controlled by entities whose primary business is the
harvesting, processing, or distribution of fish or fish products. Any
non-bank entity that wishes to qualify for this exception must submit a
letter requesting the exception and a Trawl Identification of Ownership
Interest Form. All shareholders that have a two percent or more
ownership interest share in the lender must be identified. The lender
must make subsequent annual submissions of the Trawl Identification of
Ownership Interest Form to maintain the exception.
The proposed action to change the opt-out requirement for QP
deficits would only affect the Shorebased IFQ sector of the Pacific
Coast Groundfish fishery. NMFS is proposing changes to the ``opt-out''
requirements because inequities between a vessel that incurs a
violation and is allowed to continue in the fishery compared to a
vessel that stays in compliance and opts-outs for the remainder of the
year-relying on future carryover pounds to resolve any deficit. The
changes to the opt-requirements allow vessels that opt out the ability
to return to the fishery if at some time during the year, the vessel
resolves its deficit issue. This item was addressed by the Council at
the March and April 2012 Council meetings. At its April 2012 meeting,
the Council recommended changing the opt-out requirement for QP
deficits lasting more than 30 days, in order to allow vessels to rejoin
the fishery after deficits are cleared. Under the status quo, any
vessel with a documented deficit is prohibited from fishing groundfish
and is required to cure the deficit within 30 days. If a vessel carries
a deficit for more than 30 days and the amount of the deficit is within
the carry-over allowance, then the vessel can stay within compliance of
the program by opting out of the fishery for the remainder of the year.
Vessels which do not opt out, but instead incur a violation, are
allowed to rejoin the fishery as soon as the deficit is cured. Deficits
greater than the carryover allowance must be brought within the
carryover allowance before the 30-day clock expires, or the vessel will
incur a violation.
A variety of circumstances may arise under which a vessel incurs a
deficit. When a deficit is incurred early in the year, it may not be
possible to acquire QP for certain species at a reasonable price
because of uncertainties about bycatch rates and tight QP markets for
constraining species. Later in the year, QP could become more readily
available. However, current regulations give the vessel two choices,
each with potentially substantial adverse consequences: (1) Incur a
violation, including the penalty and subsequent consequences of a
violation record, and preserve the opportunity to participate later in
the year, or (2) leave the fishery and forgo all remaining opportunity
for the year (unused QP might be sold off to other vessels). Vessels
that have carried a known deficit for more than 30 days may avoid a
violation by opting out of the fishery for the remainder of
[[Page 43132]]
the year (so long as the deficit is less than the carryover allowance).
The 30-day clock with the provision allowing vessels to opt-out for the
remainder of the year was originally intended to encourage vessels to
cover their overages sooner rather than later.
However, as described above, this provision creates a situation in
which a vessel that incurs a violation is allowed to continue in the
fishery while a vessel that stays in compliance must opt out for the
remainder of the year. Furthermore, to date there have been three
events where a vessel was in deficit and approached the 30-day time
period before covering their deficit. In two of these cases the deficit
involved target species, and the vessel did not cover the deficit
because it was participating in another fishery and chose to wait until
the end of the 30-day period before covering their deficit. In the
third situation, the deficit involved a large quantity of an overfished
species. In all three situations the deficits were larger than the
carryover amount (10 percent) and the vessels were not eligible to opt
out. While vessels have not been using the opt-out provision, it is
uncertain whether or not they have had to pay higher prices for QP in
order to avoid being forced into the opt-out/violation choice. Some
view this situation as inequitable. In order to correct this perceived
inequity, NMFS proposes to change the regulations at Sec.
660.140(e)(5)(ii)(A) so that once a vessel has cured a deficit, it may
rejoin the fishery without incurring a violation.
The Small Business Administration has established size criteria for
all major industry sectors in the US, including fish harvesting and
fish processing businesses. A business involved in fish harvesting is a
small business if it is independently owned and operated and not
dominant in its field of operation (including its affiliates) and if it
has combined annual receipts not in excess of $4.0 million for all its
affiliated operations worldwide. A seafood processor is a small
business if it is independently owned and operated, not dominant in its
field of operation, and employs 500 or fewer persons on a full time,
part time, temporary, or other basis, at all its affiliated operations
worldwide. A business involved in both the harvesting and processing of
seafood products is a small business if it meets the $4.0 million
criterion for fish harvesting operations. A wholesale business
servicing the fishing industry is a small business if it employs 100 or
fewer persons on a full time, part time, temporary, or other basis, at
all its affiliated operations worldwide. For marinas and charter/party
boats, a small business is one with annual receipts not in excess of
$7.0 million. These regulations also affect a class of financial
institutions. NMFS believes that the following standard applies for All
Other Non-depository Credit Intermediaries--$6 million in average
annual receipts as the maximum annual receipts for small entities.
As part of the permit application processes for the non-tribal
fisheries, based on a review of the SBA size criteria, applicants are
asked if they considered themselves a ``small'' business and to provide
detailed ownership information. Many companies participate in two or
more of these sectors. All MS/CV participants are involved in the
shorebased IFQ sector while two of the three CP companies also
participate in both the shorebased IFQ sector and in the MS sector.
Many companies own several QS accounts or own vessel accounts. Taking
into account cross participation, multiple accounts, and affiliation
between entities, NMFS estimates that there are 143 fishery related
entities directly affected by these proposed regulations, 99 of which
are considered to be ``small'' businesses.
NMFS is not familiar with the financial industry; the following is
a tentative projection of the potential number of small lenders
affected by this rule. Public comment received by the PFMC indicates
that there are possibly two lenders that are the most likely lenders to
apply for the lender's exception. Based on SBA criteria and review of
information associated with these lenders, both these lenders can be
considered ``large'' entities based on either the amount of their
business activities or by their affiliation with large entities.
However, there are a number of small lenders that may qualify for the
``exception.'' A review of the North American Industry Classification
System used by the U.S. Census Bureau suggests that the likely entities
that may seek an exception fall into the ``NAICS 522298-All Other Non-
depository Credit Intermediation'' category. This category includes
lenders that, for example, provide short-term inventory, credit,
agricultural lending, and consumer cash lending secured by personal
property. U.S. Census data indicates that in 2011, there were 730
entities within the NAICS 522298 classification operating in the states
of Washington, Oregon, and California--the states most likely to have
lenders that will work with the West Coast industry. In assessing
various lenders that participate in SBA programs that fall within the
NAICS 522298 classification, SBA estimated that over 95 percent of
these participants did not exceed the applicable small business size
standard and are, therefore to be considered small entities (73 FR
75507; December 11, 2008). Applying this percentage suggests that there
are approximately 695 small lenders in the states of Washington,
Oregon, and California that are potential beneficiaries of this rule.
As this proposed rule is primarily administrative in nature, NMFS
does not believe that the proposed changes would have a significant
impact on small entities; these changes were recommended by the
industry to increase flexibility or efficiency. As such, NMFS has not
identified significant alternatives. Through the rulemaking process
associated with this action, we are requesting comments on this
conclusion.
No Federal rules have been identified that duplicate, overlap, or
conflict with the alternatives. Public comment is hereby solicited,
identifying such rules. A copy of this analysis is available from NMFS
(see ADDRESSES).
This proposed rule contains a collection-of-information requirement
subject to review and approval by OMB under the Paperwork Reduction Act
(PRA). This requirement has been submitted to OMB for approval. Public
reporting burden for the QS permit/account application form is
estimated to average 30 minutes per response, 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 reporting burden for the online QS
transfer form is estimated to average 10 minutes per response,
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 reporting burden for
the online QP transfer form (from a QS account to a vessel account, or
vessel account to another vessel account) is estimated to average 8
minutes per response, 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 reporting burden for the trawl identification of ownership
interest form for new entrants, including lenders, is estimated to
average 45 minutes per response, including the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data
[[Page 43133]]
needed, and completing and reviewing the collection of information.
Public reporting burden for the first receiver site license application
form for re-registering applicants is estimated to average 110 minutes
per response, 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
reporting burden for the mothership cooperative permit application form
is estimated to average 4 hours per response, 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 reporting burden for the catcher/
processor cooperative permit application form is estimated to average 2
hours per response, 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: 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. Send comments on
these or any other aspects of the collection of information to NMFS,
Northwest Region at the ADDRESSES above, and email to [email protected], or fax to 202-395-7285.
Notwithstanding any other provision of the law, no person is
required to respond to, and no person shall be subject to 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.
This proposed rule was developed after meaningful consultation and
collaboration, through the Council process, with the tribal
representative on the Council. The proposed regulations have no direct
effect on the tribes.
List of Subjects in 50 CFR Part 660
Fisheries, Fishing, and Indian fisheries.
Dated: July 11, 2013.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, performing the
functions and duties of the Assistant Administrator for Fisheries,
National Marine Fisheries Service.
For the reasons stated in the preamble, 50 CFR part 660 is proposed
to be amended as follows:
PART 660--FISHERIES OFF WEST COAST STATES
0
1. The authority citation for part 660 is revised to read as follows:
Authority: 16 U.S.C. 1801 et seq., 16 U.S.C. 773 et seq., and
16 U.S.C. 7001 et seq.
Sec. 660.11 [Amended]
0
2. In Sec. 660.11, remove the definition for ``Permit holder''.
0
3. In Sec. 660.12, revise paragraph (a)(8) to read as follows:
Sec. 660.12 General groundfish prohibitions.
* * * * *
(a) * * *
(8) Fail to sort, prior to the first weighing after offloading,
those groundfish species or species groups for which there is a trip
limit, size limit, scientific sorting designation, quota, harvest
guideline, ACT, ACL or OY, if the vessel fished or landed in an area
during a time when such trip limit, size limit, scientific sorting
designation, quota, harvest guideline, ACT, ACL or OY applied; except
as specified at Sec. 660.130(d).
* * * * *
0
4. In Sec. 660.25 revise paragraphs (b)(3)(ii), (b)(3)(iv)(C)(4),
(b)(3)(vii), (b)(4) introductory text, add paragraph (b)(4)(i)(G),
revise paragraphs (b)(4)(iv) introductory text, (b)(4)(iv)(A) through
(C), (b)(4)(v)(B) and (D), (b)(4)(vi)(B), (b)(4)(vii) introductory
text, (b)(4)(vii)(A) through (C), (b)(4)(viii), and (g)(1) to read as
follows:
Sec. 660.25 Permits.
* * * * *
(b) * * *
(3) * * *
(ii) Gear endorsement. There are three types of gear endorsements:
Trawl, longline and pot (trap). When limited entry ``A''-endorsed
permits were first issued, some vessel owners qualified for more than
one type of gear endorsement based on the landings history of their
vessels. Each limited entry ``A''-endorsed permit has one or more gear
endorsement(s). Gear endorsement(s) assigned to the permit at the time
of issuance will be permanent and shall not be modified. While
participating in the limited entry fishery, the vessel registered to
the limited entry ``A''-endorsed permit is authorized to fish the
gear(s) endorsed on the permit. While participating in the limited
entry, fixed gear primary fishery for sablefish described at Sec.
660.231, a vessel registered to more than one limited entry permit is
authorized to fish with any gear, except trawl gear, endorsed on at
least one of the permits registered for use with that vessel. Vessels
registered to limited entry permits may be used to fish with open
access gear, subject to the crossover provisions at Sec. 660.60
(h)(7)(ii), except that vessels registered to sablefish-endorsed
permits fishing in the sablefish primary season described at Sec.
660.231, may not fish with open access gear against those limits. An MS
permit does not have a gear endorsement.
* * * * *
(iv) * * *
(C) * * *
(4) Any partnership or corporation with any ownership interest in a
limited entry permit with a sablefish endorsement or in the vessel
registered to the permit shall document the extent of that ownership
interest with NMFS via the Identification of Ownership Interest Form
sent to the permit owner through the annual permit renewal process and
whenever a change in permit owner, vessel owner, and/or vessel
registration occurs as described at paragraph (b)(4)(iv) and (v) of
this section. NMFS will not renew a sablefish-endorsed limited entry
permit through the annual renewal process described at paragraph
(b)(4)(i) of this section, or approve a change in permit owner, vessel
owner, and/or vessel registration unless the Identification of
Ownership Interest Form has been completed. Further, if NMFS discovers
through review of the Identification of Ownership Interest Form that an
individual person, partnership, or corporation owns or holds more than
3 permits and is not authorized to do so under paragraph
(b)(3)(iv)(C)(2) of this section, the individual person, partnership or
corporation will be notified and the permits owned or held by that
individual person, partnership, or corporation will be void and
reissued with the vessel status as ``unidentified'' until the permit
owner owns and/or holds a quantity of permits appropriate to the
restrictions and requirements described in paragraph (b)(3)(iv)(C)(2)
of this section. If NMFS discovers through review of the Identification
of Ownership Interest Form that a partnership or corporation has had a
change in membership since November 1, 2000, as described in paragraph
[[Page 43134]]
(b)(3)(iv)(C)(3) of this section, the partnership or corporation will
be notified, NMFS will void any existing permits, and reissue any
permits owned and/or held by that partnership or corporation in
``unidentified'' status with respect to vessel registration until the
partnership or corporation is able to register ownership of those
permits to persons authorized under this section to own sablefish-
endorsed limited entry permits.
* * * * *
(vii) Endorsement and exemption restrictions. ``A'' endorsements,
gear endorsements, sablefish endorsements and sablefish tier
assignments, and C/P endorsements may not be registered to another
permit owner (i.e., change in permit ownership or ownership interest)
or to another vessel (i.e., change in vessel registration) separately
from the limited entry permit. At-sea processing exemptions, specified
at paragraph (b)(6) of this section, are associated with the vessel and
not with the limited entry permit and may not be registered to another
permit owner or to another vessel without losing the exemption.
(4) Limited entry permit actions--renewal, combination, stacking,
change of permit owner or vessel owner, and change in vessel
registration
* * * * *
(i) * * *
(G) At the time of renewal, NMFS will notify owners of limited
entry permits and vessel owners if vessel ownership information for a
vessel registered to the permit is not current. NMFS will not renew a
limited entry permit registered to a vessel for which vessel ownership
information is not current.
* * * * *
(iv) Changes in permit owner and/or vessel owner--
(A) General. Change in permit owner and/or vessel owner
applications must be submitted to NMFS with the appropriate
documentation described at paragraphs (b)(4)(vii) and (viii) of this
section. The permit owner may convey the limited entry permit to a
different person. The new permit owner will not be authorized to use
the permit until the change in permit owner has been registered with
and approved by NMFS. NMFS will not approve a change in permit owner
for a limited entry permit with a sablefish endorsement that does not
meet the ownership requirements for such permit described at paragraph
(b)(3)(iv)(C) of this section. NMFS will not approve a change in permit
owner for a limited entry permit with an MS/CV endorsement or an MS
permit that does not meet the ownership requirements for such permit
described at Sec. 660.150(g)(3), and Sec. 660.150(f)(3),
respectively. NMFS considers the following as a change in permit owner
that would require registering with and approval by NMFS, including but
not limited to: Selling the permit to another individual or entity;
adding an individual or entity to the legal name on the permit; or
removing an individual or entity from the legal name on the permit. A
change in vessel owner includes any changes to the name(s) of any or
all vessel owners, as registered with USCG or a state. The new owner(s)
of a vessel registered to a limited entry permit must report any change
in vessel ownership to NMFS within 30 calendar days after such change
has been registered with the USCG or a state licensing agency.
(B) Effective date. The change in permit ownership or change in the
vessel holding the permit will be effective on the day the change is
approved by NMFS, unless there is a concurrent change in the vessel
registered to the permit. Requirements for changing the vessel
registered to the permit are described at paragraph (b)(4)(v) of this
section.
(C) Sablefish-endorsed permits. If a permit owner submits an
application to register a sablefish-endorsed limited entry permit to a
new permit owner or vessel owner during the primary sablefish season
described at Sec. 660.231 (generally April 1 through October 31), the
initial permit owner must certify on the application form the
cumulative quantity, in round weight, of primary season sablefish
landed against that permit as of the application signature date for the
then current primary season. The new permit owner or vessel owner must
sign the application form acknowledging the amount of landings to date
given by the initial permit owner. This certified amount should match
the total amount of primary season sablefish landings reported on state
landing receipts. As required at Sec. 660.12(b), any person landing
sablefish must retain on board the vessel from which sablefish is
landed, and provide to an authorized officer upon request, copies of
any and all reports of sablefish landings from the primary season
containing all data, and in the exact manner, required by the
applicable state law throughout the primary sablefish season during
which a landing occurred and for 15 days thereafter.
* * * * *
(v) * * *
(B) Application. Change in vessel registration applications must be
submitted to NMFS with the appropriate documentation described at
paragraphs (b)(4)(vii) and (viii) of this section. At a minimum, a
permit owner seeking to change vessel registration of a limited entry
permit shall submit to NMFS a signed application form and his/her
current limited entry permit before the first day of the cumulative
limit period in which they wish to fish. If a permit owner provides a
signed application and current limited entry permit after the first day
of a cumulative limit period, the permit will not be effective until
the succeeding cumulative limit period. NMFS will not approve a change
in vessel registration until it receives a complete application, the
existing permit, a current copy of the USCG 1270, and other required
documentation.
* * * * *
(D) Sablefish-endorsed permits. If a permit owner submits an
application to register a sablefish-endorsed limited entry permit to a
new vessel during the primary sablefish season described at Sec.
660.231 (generally April 1 through October 31), the initial permit
owner must certify on the application form the cumulative quantity, in
round weight, of primary season sablefish landed against that permit as
of the application signature date for the then current primary season.
The new permit owner or vessel owner associated with the new vessel
must sign the application form acknowledging the amount of landings to
date given by the initial permit owner. This certified amount should
match the total amount of primary season sablefish landings reported on
state landing receipts. As required at Sec. 660.12(b), any person
landing sablefish must retain on board the vessel from which sablefish
is landed, and provide to an authorized officer upon request, copies of
any and all reports of sablefish landings from the primary season
containing all data, and in the exact manner, required by the
applicable state law throughout the primary sablefish season during
which a landing occurred and for 15 days thereafter.
* * * * *
(vi) * * *
(B) Limited entry fixed gear and trawl-endorsed permits (without
MS/CV or C/P endorsements). Limited entry fixed gear and trawl-endorsed
permits (without MS/CV or C/P endorsements) may not be registered for
use with a different vessel more than once per calendar year, except in
cases of death of a vessel owner or if the vessel registered to the
permit is totally lost as defined in Sec. 660.11. The exception for
death of a vessel owner applies for a
[[Page 43135]]
vessel owned by a partnership or a corporation if the person or persons
with at least 50 percent of the ownership interest in the entity dies.
* * * * *
(vii) Application and supplemental documentation. Permit owners may
request a change in vessel registration and/or change in permit owner
or vessel owner by submitting a complete application form. In addition,
a permit owner applying for a change in vessel registration and/or
change in permit owner of a limited entry permit has the burden to
submit evidence to prove that qualification requirements are met. If a
change in vessel owner occurs, the new vessel owner has the burden to
submit evidence to prove that qualification requirements are met. The
following evidentiary standards apply:
(A) For a request to change a vessel registration and/or change a
permit owner or vessel owner, the permit owner must provide NMFS with a
current copy of the USCG Form 1270 for vessels of 5 net tons or
greater, or a current copy of a state registration form for vessels
under 5 net tons.
(B) For a request to change a vessel registration and/or change a
permit owner or vessel owner for sablefish-endorsed permits with a tier
assignment for which a corporation or partnership is listed as permit
owner and/or vessel owner, an Identification of Ownership Interest Form
must be completed and included with the application form.
(C) For a request to change a permit owner for an MS permit or for
a request to change a vessel registration and/or change a permit owner
or vessel owner for an MS/CV-endorsed limited entry trawl permit, an
Identification of Ownership Interest Form must be completed and
included with the application form.
* * * * *
(viii) Application forms available. Application forms for a change
in vessel registration, permit owner, or vessel owner are available at:
NMFS Northwest Region, Sustainable Fisheries Division, ATTN: Fisheries
Permit Office, 7600 Sand Point Way, NE., Seattle, WA 98115; or http://www.nwr.noaa.gov/fisheries/management/groundfish_permits/limited_entry_permits.html. Contents of the application, and required
supporting documentation, are also specified in the application form.
Only complete applications will be processed.
* * * * *
(g) * * *
(1) General. For permit actions, including issuance, renewal,
change in vessel registration and/or change in permit owner or vessel
owner, and endorsement upgrade, the Assistant Regional Administrator
for Sustainable Fisheries will make an IAD on the action. In cases
where the applicant disagrees with the IAD, the applicant may appeal
that decision. Final decisions on appeals of IADs regarding issuance,
renewal, change in vessel registration and/or change in permit owner or
vessel owner, and endorsement upgrade, will be made in writing by the
Regional Administrator acting on behalf of the Secretary of Commerce
and will state the reasons therefore. This section describes the
procedures for appealing the IAD on permit actions made in this title
under subparts C through G of part 660. Additional information
regarding appeals of an IAD related to the trawl rationalization
program is contained in the specific program sections under subpart D
of part 660.
* * * * *
0
5. In Sec. 660.111, under the definition of ``Accumulation limits'',
revise paragraph (1)(ii) for the definition for ``Vessel limits'' to
read as follows:
Sec. 660.111 Trawl fishery--definitions.
* * * * *
(1) * * *
(ii) Vessel limits means the maximum amount of QP a vessel can
hold, acquire, and/or use during a calendar year, and specify the
maximum amount of QP that may be registered to a single vessel during
the year (QP Vessel Limit) and, for some species, the maximum amount of
unused QP registered to a vessel account at any one time (Unused QP
Vessel Limit), as described at Sec. 660.140(e)(4). Compliance with the
QP vessel limit (annual limit) is calculated as all QPs transferred in
minus all QPs transferred out of the vessel account.
* * * * *
0
6. In Sec. 660.112, add paragraphs (b)(1)(xvi) and (b)(1)(xvii), and
revise paragraph (b)(2)(ii) to read as follows:
Sec. 660.112 Trawl fishery--prohibitions.
* * * * *
(b) * * *
(1) * * *
(xvi) Fail to establish a new registered vessel account in the name
of the current vessel owner, following a change in ownership of a
vessel, prior to fishing in the Shorebased IFQ Program with that
vessel.
(xvii) Land groundfish taken and retained during an IFQ trip, from
the vessel that harvested the fish, to a first receiver that does not
hold a valid first receiver site license for the physical location
where the IFQ landing occurred.
* * * * *
(2) * * *
(ii) Fail to sort fish received from a IFQ landing prior to first
weighing after offloading as specified at Sec. 660.130(d)(2) for the
Shorebased IFQ Program, with the following exception. Vessels with a
valid Shorebased IFQ Program declaration as specified at Sec.
660.13(d)(5)(iv)(A) making an IFQ landing, may weigh catch on a bulk
scale or automatic hopper scale before sorting as described at Sec.
660.140(j)(2)(viii), for Pacific whiting taken with midwater trawl
gear, and at Sec. 660.140(j)(2)(ix)(A), for all other IFQ landings.
For this exception, all catch in the landing other than the single
predominant species must then be reweighed. The weight of a single
predominant species is determined by deducting the weight of all other
species from the total weight of the landing.
* * * * *
0
7. In Sec. 660.113, revise paragraphs (c)(3) and (d)(3) to read as
follows:
Sec. 660.113 Trawl fishery--recordkeeping and reporting.
* * * * *
(c) * * *
(3) Annual coop report. The designated coop manager for the
mothership coop must submit an annual report to NMFS and the Council by
March 31 each year, before a coop permit is issued for that year. The
annual coop report will contain information about the previous year's
fishery, including:
(i) The mothership sector's annual allocation of Pacific whiting
and the permitted mothership coop allocation;
(ii) The mothership coop's actual retained and discarded catch of
Pacific whiting, salmon, Pacific halibut, rockfish, groundfish, and
other species on a vessel-by-vessel basis;
(iii) A description of the method used by the mothership coop to
monitor performance of coop vessels that participated in the fishery;
(iv) A description of any actions taken by the mothership coop in
response to any vessels that exceed their allowed catch and bycatch;
and
(v) Plans for the current year's mothership coop fishery, including
the companies participating in the cooperative, the harvest agreement,
and catch monitoring and reporting requirements.
* * * * *
(d) * * *
(3) Annual coop report. The designated coop manager for the C/P
[[Page 43136]]
coop must submit an annual report to NMFS and the Council by March 31
each year, before a coop permit is issued for that year. The annual
coop report will contain information about the previous year's fishery,
including:
(i) The C/P sector's annual allocation of Pacific whiting;
(ii) The C/P coop's actual retained and discarded catch of Pacific
whiting, salmon, Pacific halibut, rockfish, groundfish, and other
species on a vessel-by-vessel basis;
(iii) A description of the method used by the C/P coop to monitor
performance of cooperative vessels that participated in the fishery;
(iv) A description of any actions taken by the C/P coop in response
to any vessels that exceed their allowed catch and bycatch; and
(v) Plans for the current year's C/P coop fishery, including the
companies participating in the cooperative, the harvest agreement, and
catch monitoring and reporting requirements.
* * * * *
0
8. In Sec. 660.130, revise paragraphs (d)(2)(i), (d)(2)(ii) and
(d)(3)(i) to read as follows:
Sec. 660.130 Trawl fishery--management measures.
* * * * *
(d) * * *
(2) * * *
(i) First receivers. Fish landed at IFQ first receivers (including
shoreside processing facilities and buying stations that intend to
transport catch for processing elsewhere) must be sorted, prior to
first weighing after offloading from the vessel and prior to transport
away from the point of landing, with the following exception. Vessels
with a valid Shorebased IFQ Program declaration as specified at Sec.
660.13(d)(5)(iv)(A) making an IFQ landing, may weigh catch on a bulk
scale or automatic hopper scale before sorting as described at Sec.
660.140(j)(2)(viii), for Pacific whiting taken with midwater trawl
gear, and at Sec. 660.140(j)(2)(ix)(A), for all other IFQ landings.
For this exception, all catch in the landing other than the single
predominant species must then be reweighed. The weight of a single
predominant species is determined by deducting the weight of all other
species from the total weight of landing.
(ii) Catcher vessels. All catch must be sorted to the species
groups specified in paragraph (d)(1) of this section for vessels with
limited entry permits, except those retaining all catch during a IFQ
trip. The catch must not be discarded from the vessel and the vessel
must not mix catch from hauls until the observer has sampled the catch.
Prohibited species must be sorted according to the following species
groups: Dungeness crab, Pacific halibut, Chinook salmon, other salmon.
Non-groundfish species must be sorted as required by the state of
landing.
* * * * *
(3) * * *
(i) Pacific whiting at-sea processing vessels may use an accurate
in-line conveyor or hopper type scale to derive an accurate total catch
weight prior to sorting. Immediately following weighing of the total
catch, the catch must be sorted to the species groups specified in
paragraph (d)(1) of this section and all incidental catch (groundfish
and non-groundfish species) must be accurately accounted for and the
weight of incidental catch deducted from the total catch weight to
derive the weight of a single predominant species.
* * * * *
0
9. In Sec. 660.140,
0
a. Revise paragraph (b)(1)(iii);
0
b. Add paragraph (d)(2)(iii), revise paragraphs (d)(3)(i)(A) and (C),
(d)(3)(ii)(B)(2) and (3)(ii), delete paragraph (d)(3)(ii)(B)(3)(iii),
and revise paragraph (d)(4)(iii);
0
c. Revise paragraphs (e)(3)(iii)(B), (e)(4)(i), and (e)(5)(ii)(A);
0
d. Revise paragraphs (f)(2)(ii), (f)(3) introductory text, (f)(3)(i)
and (ii),(f)(3)(iii)(A) and (B), add paragraph (f)(3)(iii)(C)(12), and
revise paragraph (f)(3)(iii)(D);
0
e. Revise paragraphs (f)(5) and (f)(6), and
0
f. Revise paragraphs (j)(2)(viii) and (j)(2)(ix)(B), to read as
follows:
Sec. 660.140 Shorebased IFQ Program.
* * * * *
(b) * * *
(1) * * *
(iii) All IFQ species/species group catch (landings and discards)
must be covered by QP or IBQ pounds. Any deficit (negative balance in a
vessel account) must be cured within 30 calendar days from the date the
deficit from that trip is documented in the vessel account, unless the
deficit is within the limits of the carryover provision at paragraph
(e)(5) of this section, in which case the vessel account owner must
declare out of the Shorebased IFQ Program, and must eliminate the
deficit prior to re-entry into the fishery in the current year, or
within 30 days after the issuance of QP or IBQ pounds for the following
year.
* * * * *
(d) * * *
(2) * * *
(iii) QS permit application process. NMFS will accept a QS permit
application from January 1 to November 30 of each calendar year. QS
permit applications received between December 1 and December 31 will be
processed by NMFS in the following calendar year. NMFS will issue only
one QS permit to each unique person, as defined at Sec. 660.11 subject
to the eligibility requirements at Sec. 660.140(d)(2)(i). Each
applicant must submit a complete application. A complete application
includes a QS permit application form, payment of required fees,
complete documentation of QS permit ownership on the Trawl
Identification of Ownership Interest Form as required under paragraph
(d)(4)(iv) of this section, and a complete economic data collection
form if required under Sec. 660.114. NMFS may require additional
documentation as it deems necessary to make a determination on the
application. The QS permit application will be considered incomplete
until the required information is submitted.
(A) Initial administrative determination. For all complete
applications, NMFS will issue an IAD that either approves or
disapproves the application. If approved, the QS permit serves as the
IAD. If disapproved, the IAD will provide the reasons for this
determination. If the applicant does not appeal the IAD within 30
calendar days, the IAD becomes the final decision of the Regional
Administrator acting on behalf of the Secretary of Commerce.
(B) Effective date. The QS permit is effective on the date given on
the permit and remains effective until the end of the calendar year.
(C) Appeals. If NMFS does not accept the QS permit application, the
applicant may appeal the IAD consistent with the general permit appeals
process defined at Sec. 660.25(g).
(3) * * *
(i) * * *
(A) QS permits expire at the end of each calendar year, and must be
renewed between October 1 and November 30 of each year in order to
remain in effect the following year. A complete QS permit renewal
package must be received by NMFS no later than November 30 to be
accepted by NMFS. A QS permit owner may submit a paper renewal package
after January 1 of the following year as described in paragraph
(d)(3)(i)(C) of this section.
* * * * *
(C) A complete QS permit renewal package must be received by
November 30 of each calendar year. If a complete QS permit renewal
package is not received by November 30, NMFS will not renew the QS
permit, the associated
[[Page 43137]]
QS account will not be activated in the following calendar year, and QS
may not be transferred. NMFS will not issue QP or IBQ pounds associated
with the non-renewed QS permit for that year. Any QP or IBQ pounds
derived from the QS or IBQ in the inactive QS account will be
distributed to the active QS accounts in proportion to the QS or IBQ
for each IFQ species given on the renewed QS permit. If a QS permit is
not renewed during the October 1 through November 30 renewal period,
the QS permit owner may renew after January 1 in the following year by
submission of a paper renewal application, or may renew the QS permit
during the next October 1 through November 30 renewal period. For
renewals submitted after January 1, QPs allocated as specified at
paragraph (d)(1) of this section will not be allocated to the QS
account in that year. The QS permit owner will be able to transfer QS
percentages from the time the QS account is activated until November 30
of that calendar year.
* * * * *
(3) * * *
(ii) * * *
(B) * * *
(2) Transfer of QS or IBQ between QS accounts. Beginning January 1,
2014, QS permit owners may transfer QS (except for widow rockfish QS)
or IBQ to another owner of a QS permit, subject to accumulation limits
and approval by NMFS. The prohibition on transferability of widow
rockfish QS is extended indefinitely pending final action on
reallocation of widow rockfish QS, or a NMFS determination that no such
reallocation will occur, except under U.S. court order or authorization
and as approved by NMFS. QS or IBQ is transferred as a percent,
divisible to one-thousandth of a percent (i.e., greater than or equal
to 0.001%). QS or IBQ cannot be transferred to a vessel account. Owners
of non-renewed QS permits may not transfer QS. QP in QS accounts cannot
be transferred between QS accounts. NMFS will allocate QP based on the
QS percentages as listed on a QS permit that was renewed during the
previous October 1 through November 30 renewal period. QS transfers
will be recorded in the QS account but will not become effective for
purposes of allocating QPs until the following year. QS or IBQ may not
be transferred between December 1 through December 31 each year. Any QS
transaction that is pending as of December 1 will be administratively
retracted. NMFS will allocate QP for the following year based on the QS
percentages as of December 1 of each year.
* * * * *
(3) * * *
(ii) The QS account transfer function will be reactivated by NMFS
from the date that QS accounts are credited with additional QP to allow
QS permit owners to transfer QP to vessel accounts only for those IFQ
species with additional QP.
(4) * * *
(iii) Control. Control means, but is not limited to, the following:
(A) The person has the right to direct, or does direct, in whole or
in part, the business of the entity to which the QS or IBQ are
registered, with the exception of those activities allowed under
paragraphs C and G;
(B) The person has the right to limit the actions of or replace, or
does limit the actions of or replace, the chief executive officer, a
majority of the board of directors, any general partner, or any person
serving in a management capacity of the entity to which the QS or IBQ
are registered, with the exception of those activities allowed under
paragraphs C and G;
(C) The person, excluding banks and other financial institutions
that rely on QS or IBQ as collateral for loans as described under
paragraph (G) below, has the right to direct, or does direct, and/or
the right to prevent or delay, or does prevent or delay, the transfer
of QS or IBQ, or the resulting QP or IBQ pounds;
(D) The person, through loan covenants or any other means, has the
right to restrict, or does restrict, and/or has a controlling influence
over the day to day business activities or management policies of the
entity to which the QS or IBQ are registered, with the exception of
those activities allowed under paragraphs C and G;
(E) The person, has the right to restrict, or does restrict, any
activity related to QS or IBQ or QP or IBQ pounds, including, but not
limited to, use of QS or IBQ, or the resulting QP or IBQ pounds, or
disposition of fish harvested under the resulting QP or IBQ pounds,
with the exception of those activities allowed under paragraphs C and
G;
(F) The person has the right to control, or does control, the
management of, or to be a controlling factor in, the entity to which
the QS or IBQ, or the resulting QP or IBQ pounds, are registered, with
the exception of those activities allowed under paragraphs C and G;
(G) The person, excluding banks and other financial institutions
that rely on QS or IBQ as collateral for loans, has the right to cause
or prevent, or does cause or prevent, the sale, lease or other
disposition of QS or IBQ, or the resulting QP or IBQ pounds; and
(1) To qualify for this exception, a bank or other financial
institution must be regularly or primarily engaged in the business of
lending and not engaged in or controlled by entities whose primary
business is the harvesting, processing, or distribution of fish or fish
products.
(2) Any state or federally chartered bank or financial institution
that meets the requirement of paragraph (1) does not need to submit
additional information to NMFS.
(3) Any entity that is not a state or federally chartered bank or
financial institution, must submit a letter requesting the exception
and disclose the identity and interest share of any shareholder with a
2% or more ownership interest in the lender through submission of the
Trawl Identification of Ownership Interest Form (see Sec.
660.140(d)(4)(iv)). The lender must make subsequent annual submissions
of the letter and Trawl Identification of Ownership Interest Form to
maintain the exception. Letters requesting the exception and complete
Trawl Identification of Ownership Interest Forms may be submitted to
NMFS, Northwest Region, Permits Office, ATTN: Fisheries Permit Office,
Bldg. 1, 7600 Sand Point Way NE., Seattle, WA 98115. NMFS will only
accept complete applications.
(H) The person has the ability through any means whatsoever to
control or have a controlling influence over the entity to which QS or
IBQ is registered, with the exception of those activities allowed under
paragraphs C and G.
* * * * *
(e) * * *
(3) * * *
(iii) * * *
(B) Transfer procedures. QP or IBQ pound transfers from one vessel
account to another vessel account must be accomplished via the online
vessel account. To make a transfer, a vessel account owner must
initiate a transfer request by logging onto the online vessel account.
Following the instructions provided on the Web site, the vessel account
owner must enter pertinent information regarding the transfer request
including, but not limited to: IFQ species, amount of QP or IBQ pounds
to be transferred for each IFQ species (in whole pound increments);
name and any other identifier of the eligible transferee (e.g., USCG
documentation number or state registration number, as applicable) of
[[Page 43138]]
the eligible vessel account receiving the transfer; and the value of
the transferred QP or IBQ pounds. The online system will verify whether
all information has been entered and whether the transfer complies with
vessel limits, as applicable. If the information is not accepted, an
electronic message will record as much in the transferor's vessel
account explaining the reason(s). If the information is accepted, the
online system will record the pending transfer in both the transferor's
and the transferee's vessel accounts. The transferee must approve the
transfer by electronic signature. If the transferee accepts the
transfer, the online system will record the transfer and confirm the
transaction in both accounts through a transaction confirmation notice.
Once the transferee accepts the transaction, the transaction is final
and permanent. QP or IBQ pounds may be transferred between vessel
accounts at any time during January 1 through December 31 each year
unless otherwise notified by NMFS.
* * * * *
(4) * * *
(i) Vessel limits. For each IFQ species or species group specified
in this paragraph, vessel accounts may not have QP or IBQ pounds in
excess of the QP vessel limit (annual limit) in any year, and, for
species covered by unused QP vessel limits (daily limit), may not have
QP or IBQ pounds in excess of the unused QP vessel limit at any time.
The QP vessel limit (annual limit) is calculated as all QPs transferred
in minus all QPs transferred out of the vessel account. The unused QP
vessel limits (daily limit) is calculated as unused available QPs plus
any pending outgoing transfer of QPs.
* * * * *
(5) * * *
(ii) * * *
(A) The vessel account owner declares out of the Shorebased IFQ
Program for the year in which the deficit occurred. The vessel account
owner must submit a signed, dated, and notarized letter to OLE,
declaring out of the Shorebased IFQ Program for the remainder of the
year and invoking the carryover provision to cover the deficit. Signed,
dated, and notarized letters may be submitted to NMFS, Northwest
Region, Office of Law Enforcement, ATTN VMS, Bldg. 1, 7600 Sand Point
Way NE., Seattle, WA 98115. If the vessel account owner covers the
deficit later within the same calendar year, the vessel may re-enter
the Shorebased IFQ Program. If the deficit occurs less than 30 days
before the end of the calendar year, exiting out of the Shorebased IFQ
Program for the remainder of the year is not required.
* * * * *
(f) * * *
(2) * * *
(ii) An IFQ first receiver must have a separate first receiver site
license for each unique physical location where the IFQ first receiver
will receive, purchase or take custody, control, or take possession of
an IFQ landing from a vessel.
* * * * *
(3) Application process. Persons interested in being licensed as an
IFQ first receiver for a specific physical location must submit a
complete application for a first receiver site license to NMFS,
Northwest Region, ATTN: Fisheries Permit Office, Bldg. 1, 7600 Sand
Point Way NE., Seattle, WA 98115. NMFS will only consider complete
applications for approval. A complete application includes:
(i) State license. The license owner must provide a copy of a valid
license issued by the state in which they operate that allows the
person to receive fish from a catcher vessel.
(ii) Application form. A completed IFQ first receiver application
form provided by NMFS, signed and dated by an authorized representative
of the first receiver. To be considered complete, the form must also be
notarized.
* * * * *
(iii) * * *
(A) Catch monitoring plan review process. NMFS will accept a catch
monitoring plan if it includes all the required elements specified in
paragraph (f)(3)(iii)(C) of this section and conforms with the actual
operations and layout at the site. A site inspection is required for
new first receiver site licenses. For re-registration of an existing
first receiver site license, the site must be inspected at least once
every three years or more frequently, as deemed necessary by NMFS, or
by a NMFS designated representative. If NMFS does not accept a catch
monitoring plan for any reason, a new or revised catch monitoring plan
may be required of the first receiver.
(B) Arranging a site inspection. After receiving a complete
application for a first receiver site license, if a site inspection is
required, NMFS will contact the applicant to schedule a site
inspection. A complete application for a first receiver site license
must include the proposed catch monitoring plan. NMFS may request a
representative of the first receiver to be at the site at the time of
inspection. If the requested representative of the first receiver is
not made available for the inspection, the site inspection may be
postponed until the requested representative of the first receiver is
made available.
* * * * *
(C) * * *
(12) Applicant contact. Print the name of the first receiver,
physical location of the first receiver, name and phone number of the
applicant, and the date of the application. The applicant must sign the
catch monitoring plan.
* * * * *
(D) Catch monitoring plan acceptance period and changes. NMFS will
accept a catch monitoring plan if it includes the required elements
specified in paragraph (f)(3)(iii)(C) of this section and conforms with
the actual operations and layout at the site. For the first receiver
site license to remain in effect, the owner or manager must notify NMFS
in writing of any and all changes made in IFQ first receiver operations
or layout that do not conform to the catch monitoring plan.
* * * * *
(5) Effective dates. The first receiver site license is valid from
the effective date identified on the license until June 30, or until
the state license required by paragraph (f)(2)(i) of this section is no
longer effective, whichever occurs first. A first receiver site license
may not be valid for more than 365 days.
(6) Re-registration of FRSL in subsequent years. Existing first
receiver site license holders must reapply annually by following the
application process specified in paragraph (f)(3) of this section. If
the existing license holder fails to reapply, the first receiver site
license will expire as specified in paragraph (f)(5) of this section.
For existing first receiver site license holders to continue to receive
IFQ landings without a lapse in the effectiveness of their first
receiver site license, the following re-registration deadlines apply:
(i) NMFS will mail a first receiver site license application to
existing license holders on or about February 1 each year.
(ii) Applicants who want to have their new license effective for
July 1 must submit their complete re-registration application to NMFS
by April 15. For those first receiver site license holders who do not
submit a complete re-registration application by April 15, NMFS may not
be able to issue the new license by July 1 of that calendar year, and
will issue the new license as soon as practicable.
* * * * *
(j) * * *
(2) * * *
[[Page 43139]]
(viii) Pacific whiting. For Pacific Whiting taken with midwater
trawl gear, IFQ first receivers may use an in-line conveyor or hopper
type scale to derive an accurate total catch weight prior to sorting.
Immediately following weighing of the total catch and prior to
processing or transport away from the point of landing, the catch must
be sorted to the species groups specified at Sec. 660.130(d) and all
incidental catch (groundfish and non groundfish species) must be
accurately weighed and the weight of incidental catch deducted from the
total catch weight to derive the weight of a single predominant
species.
(ix) * * *
(B) An in-line conveyor or automatic hopper scale may be used to
weigh the single predominant species after catch has been sorted. Other
species must be weighed in a manner that facilitates tracking of the
weights of those species.
* * * * *
0
10. In Sec. 660.150, revise paragraphs (c)(7)(i),
(d)(1)(iii)(A)(1)(i), and (g)(2)(iv)(D) to read as follows:
Sec. 660.150 Mothership (MS) Coop Program.
* * * * *
(c) * * *
(7) * * *
(i) Processor obligation. Through the annual MS/CV-endorsed limited
entry permit renewal process, the MS/CV-endorsed permit owner must
identify to NMFS to which MS permit the MS/CV permit owner intends to
obligate the catch history assignment associated with that permit if
they are participating in the MS coop fishery. Only one MS permit may
be designated for each MS/CV endorsement and associated catch history
assignment.
* * * * *
(d) * * *
(1) * * *
(iii) * * *
(A) * * *
(1) * * *
(i) A list of all vessels and permit owners participating in the
coop and their share of the allocated catch history assignments which
must match the amount distributed to individual permit owners by NMFS.
* * * * *
(g) * * *
(2) * * *
(iv) * * *
(D) A limited entry trawl permit owner with multiple MS/CV-
endorsements and associated CHA on a single permit may assign each
distinct MS/CV endorsement and catch history assignment separately to
coop(s) or the non-coop fishery. In such cases, as part of the coop
permit application process, specified at paragraph (d)(1)(iii) of this
section, the permit owner must specify on the coop permit application
form which MS/CV endorsement and associated CHA is specifically
registered to a particular coop.
* * * * *
0
11. In Sec. 660.213, revise paragraph (d)(2) to read as follows:
Sec. 660.213 Fixed gear fishery--recordkeeping and reporting.
* * * * *
(d) * * *
(2) For participants in the sablefish primary season, the
cumulative limit period to which this requirement applies is April 1
through October 31 or, for an individual vessel owner, when the tier
limit for the permit(s) registered to the vessel has been reached,
whichever is earlier.
0
12. In Sec. 660.216, revise paragraph (a)(1) to read as follows:
Sec. 660.216 Fixed gear fishery--observer requirements.
(a) * * *
(1) When NMFS notifies the vessel owner, operator, or the manager
of a catcher vessel, specified at Sec. 660.16(c), of any requirement
to carry an observer, the catcher vessel may not be used to fish for
groundfish without carrying an observer.
* * * * *
0
13. In Sec. 660.231, revise paragraph (b)(1) to read as follows:
Sec. 660.231 Limited entry fixed gear sablefish primary fishery.
* * * * *
(b) * * *
(1) Season dates. North of 36[deg] N. lat., the sablefish primary
season for the limited entry, fixed gear, sablefish-endorsed vessels
begins at 12 noon local time on April 1 and closes at 12 noon local
time on October 31, or closes for an individual vessel owner when the
tier limit for the permit(s) registered to the vessel has been reached,
whichever is earlier, unless otherwise announced by the Regional
Administrator through the routine management measures process described
at Sec. 660.60(c).
* * * * *
0
14. In Sec. 660.316, revise paragraph (a)(1) to read as follows:
Sec. 660.316 Open access fishery--observer requirements.
(a) * * *
(1) When NMFS notifies the vessel owner, operator, or the vessel
manager of a catcher vessel, specified at Sec. 660.16(c), of any
requirement to carry an observer, the catcher vessel may not be used to
fish for groundfish without carrying an observer.
* * * * *
[FR Doc. 2013-17162 Filed 7-18-13; 8:45 am]
BILLING CODE 3510-22-P