Proposed Rule2024-25229
Fisheries of the Exclusive Economic Zone off Alaska; Pacific Halibut Recreational Quota Entity Program Fee Collection
Primary source
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Published
October 31, 2024
Issuing agencies
Commerce DepartmentNational Oceanic and Atmospheric Administration
Abstract
NMFS proposes regulations to require a charter halibut stamp (stamp) for charter vessel anglers, age 18 years or older, for each day and each trip they intend to catch and retain halibut on a charter vessel in International Pacific Halibut Commission (IPHC) regulatory area 2C (Southeast Alaska) and 3A (Southcentral Alaska). Persons who hold charter halibut permits (CHPs) would purchase stamps, which would be electronic, from NMFS. Charter vessel guides would be required to validate a stamp for each adult charter vessel angler intending to catch and retain halibut. NMFS would ultimately transfer the collected fees from the stamp purchases to the Recreational Quota Entity (RQE) to purchase halibut Quota Share (QS) issued in the Halibut and Sablefish Individual Fishing Quota (IFQ) Program on behalf of the charter halibut fishery. This proposed rule is necessary to promote stability and economic viability in the charter halibut fishery, and is intended to promote the goals and objectives of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act), the Northern Pacific Halibut Act of 1982 (Halibut Act), and other applicable laws.
Full Text
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<title>Federal Register, Volume 89 Issue 211 (Thursday, October 31, 2024)</title>
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[Federal Register Volume 89, Number 211 (Thursday, October 31, 2024)]
[Proposed Rules]
[Pages 86772-86783]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-25229]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Parts 300 and 679
[Docket No. 241025-0279]
RIN 0648-BN18
Fisheries of the Exclusive Economic Zone off Alaska; Pacific
Halibut Recreational Quota Entity Program Fee Collection
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
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SUMMARY: NMFS proposes regulations to require a charter halibut stamp
(stamp) for charter vessel anglers, age 18 years or older, for each day
and each trip they intend to catch and retain halibut on a charter
vessel in International Pacific Halibut Commission (IPHC) regulatory
area 2C (Southeast Alaska) and 3A (Southcentral Alaska). Persons who
hold charter halibut permits (CHPs) would purchase stamps, which would
be electronic, from NMFS. Charter vessel guides would be required to
validate a stamp for each adult charter vessel angler intending to
catch and retain halibut. NMFS would ultimately transfer the collected
fees from the stamp purchases to the Recreational Quota Entity (RQE) to
purchase halibut Quota Share (QS) issued in the Halibut and Sablefish
Individual Fishing Quota (IFQ) Program on behalf of the charter halibut
fishery. This proposed rule is necessary to promote stability and
economic viability in the charter halibut fishery, and is intended to
promote the goals and objectives of the Magnuson-Stevens Fishery
Conservation and Management Act (Magnuson-Stevens Act), the Northern
Pacific Halibut Act of 1982 (Halibut Act), and other applicable laws.
DATES: Submit comments on or before December 2, 2024.
ADDRESSES: A plain language summary of this proposed rule is available
at <a href="https://www.regulations.gov/docket/NOAA-NMFS-2024-0099">https://www.regulations.gov/docket/NOAA-NMFS-2024-0099</a>. You may
submit comments on this document,
[[Page 86773]]
identified by NOAA-NMFS-2024-0099, by any of the following methods:
<bullet> Electronic Submission: Submit all electronic public
comments via the Federal e-Rulemaking Portal. Visit <a href="https://www.regulations.gov">https://www.regulations.gov</a> and type NOAA-NMFS-2024-0099 in the Search box.
Click on the ``Comment'' icon, complete the required fields, and enter
or attach your comments.
<bullet> Mail: Submit written comments to Gretchen Harrington,
Assistant Regional Administrator, Sustainable Fisheries Division,
Alaska Region NMFS. Mail comments to P.O. Box 21668, Juneau, AK 99802-
1668.
Instructions: Comments sent by any other method, to any other
address or individual, or received after the end of the comment period,
may not be considered by NMFS. All comments received are a part of the
public record and will generally be posted for public viewing on
<a href="https://www.regulations.gov">https://www.regulations.gov</a> without change. All personal identifying
information (e.g., name, address, etc.), confidential business
information, or otherwise sensitive information submitted voluntarily
by the sender will be publicly accessible. NMFS will accept anonymous
comments (enter ``N/A'' in the required fields if you wish to remain
anonymous).
Electronic copies of the Regulatory Impact Review (RIR), and the
Categorical Exclusion prepared for this action are available from
<a href="https://www.regulations.gov">https://www.regulations.gov</a> or from the NMFS Alaska Region website.
Written comments regarding the burden-hour estimates or other
aspects of the collection-of-information requirements contained in this
proposed rule may be submitted to NMFS at the above address and to
<a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under Review--Open for
Public Comments'' or by using the search function.
FOR FURTHER INFORMATION CONTACT: Kurt Iverson, 907-586-7228,
<a href="/cdn-cgi/l/email-protection#056e7077712b6c736077766a6b456b6a64642b626a73"><span class="__cf_email__" data-cfemail="8ae1fff8fea4e3fceff8f9e5e4cae4e5ebeba4ede5fc">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Authority for Action
In December 2022, through the Consolidation Appropriations Act of
2023 (Pub. L. 117-328), the U.S. Congress (Congress) enacted the
Driftnet Modernization and Bycatch Reduction Act. Public Law 117-328,
136 Stat. 4459, 5260-61 (Dec. 29, 2022). Section 106 of the Act
authorizes the North Pacific Fishery Management Council (Council) to
recommend, and the Secretary of Commerce to approve, ``regulations
necessary for the collection of fees from charter vessel operators who
guide recreational anglers who harvest Pacific halibut in IPHC
regulatory areas 2C and 3A.'' Under the Act, any fees collected shall
be available for (1) financing administrative costs of the RQE Program;
(2) the purchase of halibut QS in areas 2C and 3A by the RQE; (3)
halibut conservation and research; and (4) promotion of the halibut
resource by the RQE. This proposed rule would implement section 106 of
the Act.
The IPHC and NMFS manage fishing for Pacific halibut (halibut,
Hippoglossus stenolepis) through regulations established under
authority of the Halibut Act. The IPHC adopts regulations governing the
halibut fishery under the Convention between the United States and
Canada for the Preservation of the Halibut Fishery of the North Pacific
Ocean and Bering Sea (Convention), signed at Ottawa, Ontario, on March
2, 1953, as amended by a Protocol Amending the Convention (signed at
Washington, DC, on March 29, 1979). For the United States, regulations
developed by the IPHC are subject to acceptance by the Secretary of
State with concurrence from the Secretary of Commerce. After acceptance
by the Secretary of State and concurrence from the Secretary of
Commerce, NMFS publishes notice of the efficacy of the IPHC regulations
in the Federal Register. On March 18, 2024, NMFS published the IPHC
regulations for the 2024 fishing year. IPHC regulations affecting sport
fishing for halibut and vessels in the charter halibut fishery in IPHC
regulatory areas 2C (Southeast Alaska) and 3A (South Central Alaska)
may be found in that final rule (89 FR 19275, March 18, 2024).
Section 5 of the Halibut Act provide the Secretary of Commerce with
general responsibility to carry out the Convention and the Halibut Act.
In adopting regulations that may be necessary to carry out the purposes
and objectives of the Convention and the Halibut Act, the Secretary of
Commerce is directed to consult with the Secretary of the department in
which the U.S. Coast Guard is operating, which is currently the
Department of Homeland Security.
The Halibut Act at 16 U.S.C. 773(c) also provides the Council with
authority to develop regulations for waters off Alaska, including
limited access regulations that are in addition to, and not in conflict
with, approved IPHC regulations. Regulations developed by the Council
may be implemented by NMFS only after approval by the Secretary of
Commerce. The Council exercised this authority in the development of
halibut fishery management measures, codified at 50 CFR 300.65 through
300.67 and part 600. The Council also developed the IFQ Program for the
commercial halibut and sablefish fisheries, codified at 50 CFR part
679. Management of halibut in the IFQ Program is authorized under
section 5 of the Halibut Act.
Background
The Halibut Fisheries in Alaska
The harvest of halibut in Alaska occurs in three fisheries--the
commercial, sport, and subsistence fisheries. The commercial halibut
fishery is managed under the IFQ Program that assigns catch shares to
qualified persons as described at 50 CFR 300.65. Sport fishing for
halibut in IPHC regulatory areas 2C and 3A are subject to different
regulations, depending on whether those activities are guided (i.e.,
charter) or unguided. The subsistence halibut fishery is a non-
commercial fishery that provides opportunities for customary and
traditional use of halibut to Alaska rural residents and members of
qualified Alaska Native Tribes, as described at 50 CFR 300.65.
The following sections of the preamble summarize charter halibut
fishery management and aspects of the commercial halibut IFQ fishery
that are relevant for the proposed RQE Program fee collection.
Charter Halibut Fishery
Charter fishing is subject to restrictions under Federal
regulations that are generally more restrictive than the regulations
applicable to unguided anglers. Charter fishery regulations apply if a
charter vessel guide is providing sport fishing guide services for
compensation or with the intent to receive compensation, to a person
who is sport fishing, to take or attempt to take halibut by
accompanying or physically directing the sport fisherman in sport
fishing activities during any part of a charter vessel fishing trip.
Throughout this preamble, the terms ``charter fishery'', ``charter
vessel operator'', ``charter vessel'', ``charter vessel angler'',
``sport fishing guide services'' and ``charter vessel guide'' refer to
the guided sport fishery for halibut in Alaska. Unguided anglers
typically use their own vessels and equipment, or they may rent a
vessel and fish with no assistance from a charter vessel guide.
Over the years, NMFS has developed specific management programs for
the charter fishery to achieve allocation and conservation objectives.
NMFS has
[[Page 86774]]
developed these programs with the intent of maintaining stability and
economic viability in the charter fishery. The first major action was
the Charter Halibut Limited Access Plan (CHLAP), which established
limits on the number of charter vessel operators beginning in 2011.
Three years later, NMFS implemented the halibut Catch Sharing Plan
(CSP). The CSP established annual halibut allocations to the charter
and commercial fisheries that vary with abundance. It also developed a
process for determining annual management measures to limit charter
harvest to the annual halibut allocations in IPHC areas 2C and 3A. The
CHLAP and the CSP are summarized below.
Charter Halibut Limited Access Program
NMFS promulgated the CHLAP in January 2010 (75 FR 554, January 5,
2010). The CHLAP established Federal CHPs which have been required for
charter vessel guides in the charter halibut fishery in IPHC regulatory
areas 2C and 3A since 2011. The CHLAP is intended to provide stability
in the charter fishery by limiting the number of charter vessels
operating in areas 2C and 3A. The CHLAP also issues a limited number of
community charter halibut permits to Community Quota Entities (CQE),
which are non-profit corporations representing specified rural
communities, and Military charter halibut permits to the U.S. Military
Morale, Welfare, and Recreation (MWR) program for its service members.
In total, for all types of CHPs, NMFS has issued 1,066 CHPs: 578 in for
area 2C and 488 for area 3A.
Since implementation of the CHLAP, all charter vessel guides and
charter vessel operators in areas 2C and 3A with charter vessel anglers
on board must have an original, valid CHP on board during charter
vessel fishing trips on which halibut are caught and retained. CHPs are
endorsed for a specific IPHC regulatory area (area 2C or 3A) and the
maximum number of charter vessel anglers that may catch and retain
halibut on a charter vessel fishing trip. Charter vessel angler
endorsements on CHPs range from 4 to 38 anglers.
CHPs were issued as either transferable or non-transferable
permits, depending on the level of participation of the license
applicant during the qualifying years for the specific IPHC regulatory
area (area 2C or 3A). Non-transferable permits are intended to be
phased out when the individual or entity that was issued the permit no
longer participates in the charter fishery. Approximately 25 percent of
the CHPs issued in the combined areas are non-transferable.
CHPs may be used by persons other than the permanent holder (i.e.,
owner) of the CHP. Most commonly, this occurs when a CHP is used by a
charter vessel guide who is an employee of the holder of the CHP. This
is common at sport fishing lodges which use multiple boats, fishing
guides, and CHPs. In other cases, a CHP may be temporarily leased,
where the holder of the CHP is compensated by another party for the use
of the permit. Due to this flexibility, and to ensure that non-
transferable CHPs are correctly phased-out, a CHP holder must register
their CHP(s) each calendar year to be valid.
Additional details on the development and rationale for the CHLAP
can be found in the proposed rule for the CHLAP (74 FR 18178, April 21,
2009).
Catch Sharing Plan for IPHC Regulatory Areas 2C and 3A
NMFS implemented the CSP in January 2014 (78 FR 75844, December 12,
2013). The CSP replaced a Guideline Harvest Level that was in place
from 2004 through 2013 for managing the charter fisheries in areas 2C
and 3A. Under the CSP, a combined catch limit for areas 2C and 3A is
divided into separate allocations for the commercial IFQ fisheries and
the charter fisheries, pursuant to the CSP's allocation formulas. The
CSP is intended to balance the differing needs of the commercial and
charter fisheries over a wide range of halibut abundance. Additional
detail on the development and rationale for the CSP can be found in the
preamble for the CSP proposed rule (78 FR 39122, June 28, 2013), and in
the final rule implementing the CSP (78 FR 75844, December 12, 2013).
Commercial Individual Fishing Quota Fishery
The commercial halibut fishery off Alaska is also commonly referred
to as the ``directed halibut fishery.'' Both the commercial halibut and
sablefish fisheries off Alaska are managed under the IFQ Program, which
was implemented in 1993 (58 FR 59375, November 9, 1993). The IFQ
Program limits access to the commercial directed halibut fishery to
those persons holding halibut QS in specific management areas. Halibut
QS provides individual harvesting privileges that are allocated on an
annual basis through the issuance of IFQ permits. Quota shares are
classified by regulatory area and in one of four vessel size classes.
Additionally, to constrain consolidation, QS were initially issued as
either blocked or unblocked units. Persons received their QS in a block
if their QS would have resulted in less than 20,000 pounds of IFQ at
initial allocation in 1994. Blocked QS must be sold as a unit, and
cannot be separated. No person may hold more than three blocks of
halibut QS in any IFQ regulatory area.
The specific amount of IFQ (in net pounds) is determined annually
for each IFQ permit holder in a regulatory area by the number of QS
units the person holds, the total number of QS units issued in the
area, and the total pounds of halibut allocated to the directed
commercial fishery. Therefore, if the abundance of halibut decreases,
the catch limit will decrease and, subsequently, the number of pounds
on a person's annual IFQ permit also will decrease.
Regulations allow QS to be transferred among initial recipients and
to other individuals meeting specific eligibility requirements. When
the initial RQE Program rules became effective in 2018 (83 FR 47819,
September 21, 2018), the RQE became eligible to receive commercial
halibut QS in IPHC regulatory area 2C or 3A by transfer.
Process for Setting Annual Management Measures
The CSP also describes a public process by which the Council
develops recommendations to the IPHC for charter fishing regulations
(annual management measures) that are intended to keep the charter
fishery harvest within the allocations established for IPHC regulatory
areas 2C and 3A.
Each October, the Council's Charter Halibut Management Committee
(Charter Committee) reviews charter harvest in areas 2C and 3A during
the current year in relation to the charter halibut catch limit. Staff
from the Alaska Department of Fish and Game (ADF&G) provide an analysis
and background information used to predict charter halibut harvest for
the upcoming year under a range of alternative management measures.
These measures may include those that would directly restrict the
number or size of halibut that may be retained (e.g., daily bag limits,
trip limits, annual limits, and size limits), as well as measures that
would indirectly restrict the number of halibut that may be retained
(e.g., day closures, limits on the number of charter vessel trips a
charter vessel may make, or a prohibition on harvest by charter vessel
operators, charter vessel guides, and crew members). After reviewing
this analysis, the Charter Committee makes specific recommendations on
possible management measures for areas 2C and 3A to be analyzed for the
coming year.
[[Page 86775]]
Each December, the Charter Committee and the Council review the
completed analysis. The Council considers the recommendations of the
Charter Committee and also solicits public comments on the management
measures. Ultimately, the Council selects management measures to
recommend to the IPHC to keep charter harvests to within the charter
fishery allocations in the respective regulatory areas.
At its annual meeting each January, the IPHC establishes coast wide
and regulatory area mortality limits, which include mortality from all
sources. This IPHC process also includes adopting allocation schemes
for domestic catch sharing plans that have been developed by the
respective contracting parties to the IPHC. Included in this process
are the IPHC's consideration of the CSP commercial and charter
allocations in areas 2C and 3A. Along with the CSP allocations, the
IPHC also reviews the charter halibut management measures recommended
by the Council for areas 2C and 3A, and adopts regulations designed to
keep charter halibut harvests within their annual allocations in the
respective areas. Once accepted by the Secretary of State, with the
concurrence of the Secretary of Commerce, NMFS publishes in the Federal
Register the charter halibut management measures for each area as part
of its annual management measures.
Examples of Charter Halibut Annual Management Measures
As noted above, sport fishing for halibut in areas 2C and 3A is
subject to different regulations, depending on whether those activities
are guided (i.e., charter) or unguided. Charter sport fishing
regulations are generally more restrictive than the regulations for
unguided anglers. While the unguided halibut daily bag limit
regulations have remained unchanged for many years and allow two
halibut of any size per day to be retained, the annual charter
regulations are determined by an analysis of the performance of
previous years' charter regulations combined with predictions of
charter angling effort for the upcoming year. The Charter Committee
seeks to balance effective harvest restrictions with mitigating
economic harm, by recommending rules that reflect the differing halibut
allocations for and angler effort in area 2C and area 3A, respectively,
and that will be equitable across the many different charter business
models in area 2C and area 3A.
For example, in area 2C, charter vessel anglers have been
restricted to harvesting a bag limit of one halibut per person, per day
since 2009. A daily bag limit is the maximum number of halibut a person
may retain in any calendar day. The initial implementation of a one-
halibut daily bag limit was intended to keep charter fishery harvests
to approximately the amount of the Guideline Harvest Level; then, after
2014, to stay within the allocations established under the CSP. Over
the years, in addition to the one-fish daily bag limit, area 2C
management measures have included limits on the maximum number of
fishing lines that may be deployed from a charter vessel, day of the
week closures, and reverse slot limits that allow charter vessel
anglers to retain halibut that are either below or above a specific
size range.
In area 3A, a 2-fish daily bag limit with no size limits was
maintained during the Guideline Harvest Level years and has been
maintained under the CSP. However, after the CSP became effective in
2014, the area 3A management measures have also employed other
restrictions. These measures have included a maximum size limit on one
of the two retained halibut, a 4-fish annual limit for each charter
vessel angler, closures to halibut retention on specific days of the
week, a limit of only 1 charter vessel fishing trip per day per charter
vessel, and a limit of 1 charter vessel fishing trip in which halibut
are caught and retained per day for a CHP.
As halibut abundance has decreased over the last 10 years, and
management measures have generally become more restrictive in the
charter halibut fishery, this has led to the development of four
programs to allow interested CHP holders to harvest additional fish to
meet their business needs. These four programs are discussed below.
Guided Angler Fish Program
As part of the 2014 CSP, NMFS implemented the Guided Angler Fish
(GAF) Program to authorize limited annual transfers of commercial
halibut IFQ as GAF to qualified CHP holders. Using GAF, qualified CHP
holders who are issued a GAF permit may offer charter vessel anglers
the opportunity to retain halibut up to the limit for unguided anglers
when charter management measures limit charter vessel anglers to a more
restrictive harvest limit. For example, if charter management
regulations in area 2C restrict charter vessel anglers to a 1-halibut
daily bag limit, a charter vessel angler could use GAF to retain a
second halibut, bringing the angler's total retained amount to 2
halibut--the same daily bag limit that applies to unguided anglers.
NMFS issues GAF in whole numbers of halibut based on a conversion
factor from IFQ pounds. Conversion factors are based on the average net
weights of GAF harvested in the applicable IPHC regulatory area (area
2C or 3A) during the previous year. Average weight is determined from
data that charter vessel guides report directly to NMFS.
The GAF Program has three restrictions on GAF transfers. First, IFQ
holders in area 2C are limited to transferring up to 1,500 pounds or 10
percent, whichever is greater, of their initially-issued halibut IFQ
for use as GAF. In area 3A, IFQ holders may transfer up to 1,500 pounds
or 15 percent, whichever is greater, of their initially-issued halibut
IFQ for use as GAF. Second, no more than 400 GAF will be assigned
during 1 year to a GAF permit assigned to a holder of a CHP that is
endorsed for 6 or fewer anglers. Third, no more than a total of 600 GAF
will be assigned during 1 year to a GAF permit assigned to a holder of
a CHP endorsed for more than 6 anglers. The restrictions on transfers
of GAF are intended to prevent a particular individual, corporation, or
other entity from acquiring an excessive share of halibut fishing
privileges as GAF.
The GAF Program is described in more detail in the proposed rule
for the CSP (78 FR 39122, June 28, 2013).
Community Quota Entity Program
In 2004, the Council revised the IFQ Program to allow a distinct
set of 46 remote Alaska coastal communities to form non-profit CQEs to
purchase and hold catcher vessel halibut and sablefish QS in areas 2C,
3A, and 3B (69 FR 23681, April 30, 2004). That action was implemented
to help promote access and sustained participation by those communities
in the commercial halibut and sablefish fisheries. The IFQ resulting
from the QS held by CQEs must be leased (i.e., made available for
fishing) to community residents annually. Currently, 28 communities
have formed CQEs and have applied for and been approved to obtain QS by
transfer. Of those 28 CQEs, four have purchased QS.
CQEs may also apply to NMFS to participate in the charter halibut
fishery either by purchasing CHPs, or by being granted community
charter halibut permits, which are similar to CHPs but are available
only to CQEs. To date, NMFS has issued 48 community charter halibut
permits for area 2C and 63 community charter halibut permits for area
3A to CQEs. Charter vessel anglers on vessels using community charter
[[Page 86776]]
halibut permits are subject to the same annual management measures and
other regulations as other CHP holders.
Military Morale, Welfare, and Recreation Program
In addition to granting community charter halibut permits to CQEs,
as noted above, the CHLAP also granted CHPs to charter vessels operated
by any MWR program in Alaska. To operate a charter vessel, the MWR
program must apply to NMFS to obtain a special military charter halibut
permit. Each military charter halibut permit is non-transferable and
valid only in the regulatory area designated on the permit. Currently
the Alaska MWR program has been issued seven military charter halibut
permits. Similar to the community charter halibut permits issued to
CQEs, the military charter halibut permits are also subject to the same
annual management measures and other regulations as other CHP holders.
Recreational Quota Entity Program
The RQE Program was established in 2018 as part of the IFQ Program
in IPHC regulatory areas 2C and 3A. The program allows the RQE
designated by NMFS to purchase and hold a limited amount of commercial
halibut QS that would yield pounds of Recreational Fishing Quota (RFQ).
RFQ is the pounds of halibut issued to a RQE on an annual basis to
supplement the amount of halibut available for harvest in the charter
halibut fishery (83 FR 47819, September 21, 2018). The RQE Program
therefore provides a mechanism for compensated reallocation of a
portion of commercial halibut QS to the charter fishery, which may
result in less restrictive annual management measures for the charter
fishery.
RQE regulations at Sec. 679.42(f) establish limits on the amount
of QS that the RQE can receive by transfer annually and hold in total.
Additionally, the sum of QS held by the RQE, plus the QS associated
with the charter halibut GAF program, may not exceed the total QS
holding or use limits allowed in area 2C or 3A, respectively. RQE
regulations at Sec. 679.42(f) also limit the specific types of QS that
the RQE may purchase. In general, the RQE is prohibited from purchasing
smaller commercial holdings (i.e., ``blocks'') of commercial QS as well
as QS that is assigned to smaller vessels (e.g., QS assigned to vessel
category D).
RQE regulations at Sec. 679.40(c) call for a redistribution of QS
under circumstances when the RQE might hold ``excess'' QS. If the RQE
holds an amount of QS that allows charter vessel anglers to harvest a
daily limit of two halibut of any size in a regulatory area, then any
poundage the RQE holds over that amount must be temporarily (for that
fishing year) redistributed from the RQE back to the commercial
fishery. Fifty percent of the redistributed poundage would be assigned
to qualifying CQEs in the affected regulatory area (area 2C or area
3A), and the remaining 50 percent would be assigned to catcher vessel
QS holders in the applicable area who hold relatively small amounts of
QS; specifically, persons who hold not more than 32,333 QS units in
area 2C, or 47,469 QS units in area 3A (the equivalent of 2,000 pounds
of IFQ in the respective areas in 2015).
RQE regulations at Sec. 679.41(g)(10)(iv) also allow the RQE to
transfer its QS back to persons in the commercial halibut sector. This
feature of the program requires that QS transferred to the RQE must
retain its original vessel category and block designation.
The RQE is responsible for paying the IFQ fee liability for all RFQ
issued to the RQE under regulations at Sec. 679.45(a)(2). NMFS
calculates the fee based on the RFQ pounds issued to the RQE and the
IFQ standard ex-vessel value. To date, NMFS has not calculated an IFQ
fee liability for the RQE because NMFS has not issued any RFQ.
RQE Program regulations at Sec. Sec. 679.5 and 679.41(g) provide
monitoring and transparency provisions. The RQE must maintain its non-
profit and tax-exempt status and if the RQE entity does not do so, NMFS
would not issue RFQ to the RQE. The RQE is also required to file an
annual report with the Council by January 31 to provide details on its
administration and business operations for each year it holds QS. This
report allows the Council and NMFS to track the RQE's development and
activities to provide transparency and accountability. The RQE is
required to include the following general information in its annual
report: (1) any changes to the bylaws, board of directors, or other key
management personnel of the RQE during the preceding year; (2) amounts
and descriptions of the RQE's annual administrative expenses; (3)
amounts and descriptions of funds the RQE spent on conservation,
research, and promotion of the halibut resource and a summary of the
results of those expenditures; and (4) amounts and descriptions of all
other RQE expenses. Additionally, the RQE is required to submit the
following information in its report by regulatory area: (1) the total
amount of halibut QS by vessel category and block held by the RQE at
the start of the calendar year, on October 1, and at the end of the
calendar year; (2) a list of all transfers (purchases, sales, and any
other transfers) of halibut QS, including transaction prices if
applicable; and (3) the number of CHPs and associated charter vessel
angler endorsements purchased and held by the RQE.
If the RQE holds QS in the previous year and has not submitted a
timely and complete annual report by the January 31 deadline, NMFS
would not approve any QS transfer nor issue any RFQ until the RQE
submits the report. The RQE must submit the annual report to both the
Council and to NMFS.
In March 2020, NMFS approved the application of the Catch
Accounting Through Compensated Halibut (CATCH) Association to serve as
the RQE. CATCH is currently eligible to purchase and permanently hold
halibut QS, but to date, CATCH has not received any halibut QS
transfers. More details on the RQE Program is provided in the RQE
Program proposed (82 FR 46016, October 3, 2017) and final rules (83 FR
47819, September 21, 2018).
Purpose and Need for This Proposed Rule
During the development of the RQE Program, the Council did not
recommend a specific means to fund the RQE's purchase of commercial
halibut QS or to pay for other RQE expenses because NMFS did not have
the statutory authority to develop such rules. Under existing
regulations, the RQE could administer its own means of generating funds
to purchase commercial halibut QS. However, the RQE has not done so
because the current regulations do not allow CHP holders or their
charter vessel anglers who do not contribute to the RQE to be excluded
from accessing the additional pounds of halibut available through RQE
halibut QS holdings. Without an enforceable mechanism requiring all CHP
holders to contribute money to the RQE, there would likely be charter
fishing businesses that would benefit from, but not contribute to, the
expenses of the RQE.
Based on the above findings, the Council agreed that a regulatory
program would be necessary to establish a fee imposed on all CHP
holders to fund RQE QS purchases. From 2019 through 2022, Congress
considered legislation that would grant NMFS authority to establish
such a program. As Congress developed this legislation, the Council
simultaneously began the analytical process to examine the
administrative requirements necessary
[[Page 86777]]
to implement an RQE Program fee collection.
As the Council analyzed alternatives for an RQE Program fee
collection, the Council stated that its principal objective was to
complete the development of the RQE Program so that it is fully
functional. The Council indicated that would require the RQE to have
access to sufficient funds to purchase meaningful amounts of commercial
halibut QS and that enforceable rules would be necessary to establish a
fee collection system that was fair and reasonable to all participants.
A functioning RQE Program is intended to promote long-term efficiency
in the use of the halibut resource by allowing compensated transfers of
QS between commercial QS holders and the charter fishery, through the
RQE, under a ``willing buyer and willing seller'' approach.
The Council, in April 2022, recommended to the Secretary a stamp
program to fund the RQE as its preferred alternative. The program would
require a stamp for anglers to sport fish from charter vessels, and the
fees from selling the stamps would fund the RQE's purchase of halibut
QS. Part of the Council's rationale for recommending a stamp as a
funding mechanism for the RQE to the Secretary is that it would achieve
equity among CHP holders (i.e., charter fishing businesses would pay
fees that are proportional to the number of charter vessel anglers that
the business serves). Additionally, the Council noted that the stamp
concept is used to access other fishing and hunting opportunities and
should be familiar to sport fishing anglers, and therefore may increase
acceptance of the fee.
As noted above, the Driftnet Modernization and Bycatch Reduction
Act authorizes the Council to recommend, and the Secretary of Commerce
to approve, regulations that would collect fees from CHP holders to
provide funding to the RQE. NMFS developed these regulations and the
necessary mechanisms to implement the RQE Program fee collection. In
October 2024, the Council modified its recommendations from April 2022
to address NMFS' specific recommended revisions to the earlier motion
to clarify a simple and secure method of fee collection and adopt a
single fee for halibut stamps instead of a tiered fee approach. Both
changes maintain the overall intent for the program. These October 2024
recommendations are incorporated into this proposed rule and are
discussed further below.
This Proposed Rule
Summary of the Proposed Rule
NMFS proposes regulations that would require a stamp for all
charter vessel anglers 18 years of age or older for each calendar day
they intend to catch and retain halibut on a charter vessel in IPHC
regulatory areas 2C and 3A. The proposed fee for the daily stamp would
be $20.00. The proposed regulations specify that the stamps would be
obtained from NMFS and paid for by CHP holders who also hold a valid
registration with ADF&G to provide sport fishing guide services in
Alaska on saltwater. All CHP holders would be subject to these
regulations, including CQEs and MWR programs holding any type of CHP.
The stamps would be electronic. CHP holders would be able to log in to
their CHP holder account to purchase stamps at any time and in any
quantity. After the CHP holder purchases the stamps, they would be held
in secure, individual CHP holder accounts that would be maintained by
NMFS. Stamps would reside in the account indefinitely until they are
debited by the stamp validation process discussed below.
NMFS proposes that charter vessel guides, as defined at Sec.
300.61, would be responsible for the validation of the stamps. Stamp
validation means the action of the charter vessel guide to record the
number of stamps that are required for a particular charter vessel
fishing trip in the ADF&G saltwater charter logbook (ADF&G logbook).
Validation would occur on ADF&G logbooks before each charter vessel
fishing trip begins. A charter vessel guide will need to validate one
stamp for each angler on board the charter vessel who intends to catch
and retain halibut on that day. Current ADF&G regulations require
charter vessel guides to upload or otherwise send their completed ADF&G
logbook information to ADF&G on a regular schedule. The stamp
validation information uploaded from ADF&G logbooks would be shared
with NMFS. NMFS would compare stamp validation information from the
ADF&G logbook with the individual CHP holder accounts. In this way, CHP
holder accounts would contain a record of stamp purchases and
validations. For example, if a logbook indicated that a total of 5
charter halibut stamps were required for a given trip, NMFS would look
to the CHP holder's account to verify that 5 stamps had been purchased
to cover the stamps that were indicated as validated in the ADF&G
logbook. CHP holders would be responsible for maintaining their
accounts so that stamp validations do not exceed stamp purchases at the
end of a fishing year.
NMFS would transfer the collected stamp fees to a specific fund in
the Federal Treasury, currently referred to as the RQE Fund, which has
been created by Congress. From this account, Congress may make the
money available to NMFS, to be used for the four purposes as specified
in the Driftnet Modernization and Bycatch Reduction Act and described
above. For the promotion of the halibut resource and the purchase of
IFQ shares in IPHC areas 2C and 3A, NMFS intends to issue funds to the
RQE through periodic grants. NMFS will also finance the administrative
costs of the RQE program and support the halibut conservation and
research with monies collected from the program and transferred from
the RQE Fund to NMFS.
Charter Halibut Stamp Accounts
Under these proposed regulations, NMFS would administer the fee
collection and issue stamps to CHP holders through a NMFS-approved
system. Currently, NMFS maintains an online platform, eFish, that is
accessed by Alaska fishery participants for a variety of purposes,
including the annual registration of CHPs, recording the harvest of
GAF, and paying business fishery fees. This platform is secure. NMFS
intends to use this platform to allow CHP holders to create online
accounts for purchasing stamps. The stamps would not be year-specific.
If they are not used in a given fishing year, they would carry over to
the next fishing year. Post-season reimbursement of purchased stamps
would not be authorized. Further discussion on this subject is provided
below.
Each CHP holder, who holds one or more CHPs, would be responsible
for creating an eFish online account and ensuring that fees are paid
for the stamps. All CHPs held by a CHP holder would be added to a
single eFish account, allowing stamps to be used freely across all CHPs
on that account. For military charter halibut permits, the MWR would be
considered the CHP holder. For community charter halibut permits, the
CQE would be considered the CHP holder. Stamps would remain in the
account until they are validated and debited from the account (i.e.,
until they are used). If the CHP is sold, the CHP holders would be held
responsible for stamp validations that occurred during their respective
periods of ownership. CHP holders would also be responsible for
ensuring that the number of validated stamps from charter vessels that
used their CHP does not exceed the number of stamps that
[[Page 86778]]
have been purchased in a given fishing year. In situations where a
person holds more than one CHP, the stamp purchases and validations
would be pooled across all of the person's CHPs. If an uncorrected
deficit of stamps exists from the previous fishing year for one or more
CHPs, all other associated CHPs in that eFish account would be
considered delinquent as well.
CHPs are commonly leased, and the charter vessel guide who leases,
or otherwise uses, the CHP may not be the person who holds (i.e., owns)
the CHP. NMFS proposes that the CHP holder would be the person
responsible for ensuring that an adequate number of stamps has been
purchased to cover the number of stamp validations that are made by any
person who leases, or otherwise uses, the CHP. This is consistent with
other NMFS regulations, such as cost recovery fees, where fees are
required to access fishing rights, and those rights may be leased to
other persons. For example, IFQ lessees are not liable for IFQ program
fees. The QS holder/lessor is responsible for fee payment.
If the number of stamp validations exceeds the number of stamps
purchased on a CHP holder account, under these proposed regulations
NMFS would notify the CHP holders and give them the opportunity to
reconcile the account payments prior to the annual fee payment
deadline. Should a CHP holder disagree that their account reflects a
purchase and validation imbalance, they would have the right to request
a hearing and at such a hearing to present evidence to support their
position. If NMFS ultimately determines that an account purchase and
validation imbalance has not been reconciled for the previous fishing
year, NMFS may suspend the use and transfer of any CHPs associated with
the CHP holder account and may refer the issue to proper authorities
for collection.
Charter Stamp Transferability
As discussed above, once purchased, the stamps would be linked to
the eFish account of the CHP holder who purchased them. Stamps would
not expire and, if they have not been validated by the end of the
fishing year, they would roll over into the next fishing year. If a CHP
is revoked or invalidated, the stamps would remain linked to the
account that held that CHP. Should another valid CHP be transferred to
the person, or entity, associated with that eFish account, the stamps
would be available for use by the valid CHP.
NMFS considered, but decided against, allowing for the transfer and
reimbursement of purchased stamps. Given the purchase-as-needed
flexibility built into the RQE Program fee collection, NMFS determined
that allowing stamp transfers and reimbursements would serve limited
purposes and materially increase the complexity and administrative
costs associated with fee collection without proportionate benefits.
The proposed RQE Program fee collection allows CHP holders to purchase
stamps at any time during the season, allowing CHP holders to maintain
an operable amount of stamps without the need to stockpile stamps.
Additionally, CHP holders could reconcile stamp deficits prior to the
end of the fishing year without penalty. If a CHP holder is uncertain
of how many stamps they may need to use, or how much longer a non-
transferable CHP is valid, they would be able to monitor their eFish
CHP holder account and purchase stamps in small increments throughout
the fishing year as needed. A surplus of stamps associated with a CHP
that will not be used by the CHP holder in the foreseeable future, the
CHP holder could enter into private business agreements and lease their
CHP to deplete previously purchased stamps prior to the formal transfer
of the CHP to a new holder.
Intention To Catch and Retain Halibut
NMFS proposes that charter vessel anglers who intend to catch and
retain halibut must have a stamp assigned to them by the charter vessel
guide, and that the stamp must be validated before the charter vessel
begins a charter vessel fishing trip on a fishing day. The charter
vessel guide is responsible for ensuring that each angler intending to
catch and retain halibut has a validated stamp. The individual angler
is, in contrast, not responsible for purchasing, possessing, or
validating the stamp that is otherwise associated with the angler's
intention to catch and retain halibut.
When considering what defines intent to catch and retain halibut,
the Council's motion aligns with the ADF&G king salmon stamp, which is
a requirement for Alaska anglers ``who fish for king salmon.'' NMFS
understands there may be charter vessel fishing trips where charter
vessel anglers do not intend to retain a halibut; for example, the
anglers may decide to fish for other bottom fish on a day when halibut
retention is not allowed. In that case, a stamp would not be required.
There may be other occasions when a charter vessel angler catches a
halibut unintentionally (e.g., while fishing for salmon). Under these
circumstances, if the charter vessel angler was assigned a stamp on
that day prior to departing on the charter vessel fishing trip, they
would be allowed to retain the halibut; otherwise, the halibut would
have to be released.
Age Limit on Requirement for Charter Halibut Stamps
NMFS proposes to exempt charter vessel guides from validating
stamps for youth anglers, specifically minors under Alaska State law.
The rationale for requiring stamps be validated only for anglers 18
years or older is consistent with analogous State of Alaska licensing
requirements that require a king salmon stamp for all anglers 18 years
or older.
Charter Halibut Stamp Validation
NMFS proposes, requiring that stamps be validated before each
charter vessel fishing trip begins, and that charter vessel guides
would be responsible for the validation of the stamps. For a given
charter vessel fishing trip, a stamp would be valid from the time that
it is validated, Alaska local time, through 2400 on the calendar day
for which it was validated, Alaska local time, and would not be
transferable between charter vessel anglers nor allowed to be used on
any other charter vessel fishing trip. For the purposes of stamps, a
charter vessel fishing trip that spans multiple days would treat each
calendar day as an individual charter vessel fishing trip, meaning that
a stamp would need to be validated for each angler on each calendar
day. In the case of a charter vessel angler who goes on multiple
charter vessel fishing trips in one calendar day, a stamp would be
required to be validated for that angler for each charter fishing trip.
A charter vessel fishing trip, as defined at Sec. 300.61, begins
with the first deployment of fishing gear into the water from a charter
vessel by a charter vessel angler. Federal regulations require charter
vessel guides to enter the name and sport fishing license number of
each charter vessel angler in the ADF&G logbooks their business was
assigned before a trip begins. Charter vessel guides would use the
ADF&G logbook to validate the number of stamps that are needed for that
charter trip at that same time. Pre-trip validation would also be an
enforcement feature in that it would prevent charter vessel guides from
opportunistically validating stamps only when they anticipate being
contacted by law enforcement. Currently, NOAA Office of Law Enforcement
inspections of charter vessels routinely include an inspection of the
charter vessel's ADF&G logbook. The presence or absence of validated
stamps for each
[[Page 86779]]
charter vessel angler in the ADF&G logbooks would be an efficient, non-
intrusive means to ensure compliance with stamp requirements.
The Fee for Charter Halibut Stamps
After soliciting comments in a public outreach process, and
analyzing tiered fees more closely, NMFS and the Council recommended a
single, $20.00 fee. The $20.00 fee would apply to each day that a stamp
is required for a charter vessel angler who intends to catch and retain
halibut. The $20.00 fee is expected to provide the RQE Program with
meaningful funding to benefit the entire charter halibut fishery and
halibut resource while limiting the cost burden experienced by the
individual CHP holders that would pay the fee. Section 3.5.1.2 of the
RIR describes expected fee collections across a range of stamp prices
(see ADDRESSES). It is uncommon for a charter vessel angler to
undertake multiple charter halibut fishing trips in a single day.
Including the ability for a charter vessel angler to use a single stamp
across multiple charter vessel fishing trips in a single day would add
significant cost and complexity to the administration and enforcement
of stamps for a situation that does not occur often. As such, a stamp
is required for each charter vessel angler intending to catch and
retain halibut for each charter vessel fishing trip in a day.
The Council and NMFS considered, but did not select, a tiered fee
structure for several reasons. The Council's original motion in April
2022 called for a tiered fee structure for stamps, which would provide
a discount for stamps that are valid for multiple days of halibut
fishing. The motion called for a $20.00 daily fee for persons who fish
one or two days, $40.00 for persons who fish up to three days, and
$60.00 for persons who fish seven or more days. Although tiered fees
are common among other State of Alaska stamps and licenses, all the
State of Alaska tiered fees that were analyzed for this action are
linked to a specific person and must be purchased by the actual license
holder. Additionally, during the outreach process, CHP holders pointed
to a lack of equity among fishing businesses if tiered fees were
implemented. Operations that cater almost exclusively to one or two-day
trips would be responsible for paying fees at the highest level, while
other operations that log the same number of angler days, but whose
guests tend to fish for three or more days, would contribute
proportionately less to the RQE.
Finally, NMFS and the Council identified concerns with the cost and
complexity of administering tiered fees, where electronic stamps and
their respective validation dates would have to be tied to individual
anglers over multiple days. The burden to issue unique stamps and track
their use for individual anglers would likely be particularly difficult
among large operations where guests commonly fish for varying numbers
of days and move between boats during their stay, or to accommodate
anglers who change their intentions for halibut fishing daily. Compared
with a single-fee approach, this added administrative complexity would
significantly undermine the Council's and NMFS's goal of enacting a
simple, inexpensive fee collection strategy. Given the trade-offs of
greater complexity, higher costs, information collection burdens, and
equity in fee collections, the Council revised its recommendation to
endorse a single $20.00 fee and NMFS proposes a single-fee approach to
issuing stamps.
Changes to the Fee
Under this proposed rule, the RQE could petition NMFS to increase,
decrease, or suspend the fee for the stamp beginning in 2028. The fee
for the stamp could not increase by more than 10 percent of the fee in
the previous fishing year. After 2028, NMFS would provide the Council
with an update on any fee increase requests and any fee increases would
be implemented in regulations. The limitation on fee increases,
including the limitation on changes to the fee prior to 2028, was
recommended by the Council to protect the interests of CHP holders who
might be concerned with significant, and immediate, fee increases.
NMFS also proposes regulations that would allow for suspension of
the stamp requirement and fee collection, if necessary. As noted in
this preamble, the RQE has limits on the amount of commercial halibut
QS it may purchase. The proposed regulations would authorize NMFS to
temporarily or permanently suspend fee collection if a petition from
the RQE is received.
Additionally, NMFS proposes regulations that would allow the
Regional Administrator to suspend the stamp requirement if the RQE is
determined to be out of compliance with regulations, the RQE's own by-
laws, or other applicable law; the Regional Administrator approves a
petition by the RQE to suspend the RQE fee collection; or Congress no
longer provides authorization for the Secretary of Commerce to collect
and spend the fees.
NMFS also proposes regulations that would prohibit charter vessels
from fishing for halibut in IPHC area 2C or 3A unless the charter
vessel guide has validated a stamp for all charter vessel anglers 18
years or older who are on board the charter vessel and who intend to
catch and retain halibut for each charter vessel fishing trip on that
day. Additionally it would be prohibited to validate a stamp after the
charter vessel fishing trip has begun, validate a stamp if the charter
vessel guide does not have a valid CHP, or be a charter halibut permit
holder and fail to purchase or hold a number of charter halibut stamps
equal to or greater than the number of charter halibut stamp
validations that were performed in a given fishing year.
Classification
The NMFS Assistant Administrator has determined that this proposed
rule is consistent with section 106 of the Driftnet Modernization and
Bycatch Reduction Act, the Magnuson-Stevens Act, the Halibut Act, and
other applicable law, subject to further consideration of comments
received during the public comment period.
This proposed rule has been determined to not be significant for
the purposes of Executive Order 12866.
Regulatory Impact Review (RIR)
An RIR was prepared to assess costs and benefits of available
regulatory alternatives. A copy of this analysis is available from NMFS
(see ADDRESSES). NMFS recommends this proposed rule based on its
assessment of the net benefits to the Nation of these measures.
Specific aspects of the economic analysis are discussed below in the
Initial Regulatory Flexibility Analysis (IRFA) section.
Initial Regulatory Flexibility Analysis
This IRFA was prepared for this proposed rule, as required by
section 603 of the Regulatory Flexibility Act (RFA) (5 U.S.C. 603), to
describe the economic impact this proposed rule, if adopted, would have
on small entities. This IRFA describes the action; the reasons why this
proposed rule is proposed; the objectives and legal basis for this
proposed rule; the number and description of directly regulated small
entities to which this proposed rule would apply; the recordkeeping,
reporting, and other compliance requirements of this proposed rule; and
the relevant Federal rules that may duplicate, overlap, or conflict
with this proposed rule. This IRFA also describes significant
alternatives to this proposed rule that would accomplish the stated
objectives of the Magnuson-Stevens Act,
[[Page 86780]]
and any other applicable statutes, and that would minimize any
significant economic impact of this proposed rule on small entities.
The description of the proposed action, its purpose, and the legal
basis are explained above in the SUPPLEMENTARY INFORMATION section of
this proposed rule and are not repeated here.
For RFA purposes only, NMFS has established a small business size
standard for businesses, including their affiliates, whose primary
industry is commercial fishing (see 50 CFR 200.2). The Small Business
Administration has established a small business size standard
applicable to charter fishing vessels (North American Industry
Classification System (NAICS) code 487210; size standards effective
11.17.2022) of 14 million dollars.
Number and Description of Small Entities Regulated by This Proposed
Rule
This action requires a charter halibut stamp for each charter
vessel angler, 18 years of age or older, for each day and each charter
vessel fishing trip on which the charter vessel angler intends to catch
and retain halibut on a charter vessel in IPHC regulatory area 2C or
3A. Charter vessel guides, as defined at Sec. 300.61, would be
obligated to ensure that there are validated stamps for each charter
vessel angler fishing for halibut on a charter vessel. CHP holders
would be ultimately responsible for purchasing a sufficient quantity of
stamps each fishing year.
Thus, for RFA purposes, those entities that are directly regulated
by the action are operators of charter halibut businesses (i.e.,
Sportfishing Guide Business Owners), charter vessel guides, CHP holders
(including CHPs issued under the CQE and MWR programs), and the RQE.
The thresholds applied to determine if an entity or group of entities
is considered a ``small'' business under the RFA depends on the
industry classification for the entity or entities.
The ADF&G logbook data shows that between 2017 and 2022 there were
as many as 478 charter halibut businesses, with the low count of 342
occurring in 2021. The most recent data available shows 368 directly
regulated charter halibut businesses in 2022. The count of directly
regulated charter halibut guides was lowest in 2020, at 820 and highest
in 2019 when 1,240 charter vessel guides participated in the affected
fishery. Data for the most recent year, 2022, identified 1,037 directly
regulated charter vessel guides. Guides that are employees of charter
halibut businesses are not directly regulated entities under the RFA.
However, guides that are independent contractors are directly regulated
by this action and would be considered directly regulated entities
under the RFA.
There is no annual census data collection of gross revenues for
charter businesses or guides with which to compare to the $14 million
threshold. A voluntary Alaska Saltwater Sport Fishing Charter Business
Survey has been conducted by the Alaska Fisheries Science Center, which
has gathered information on expenses, revenues, and business
characteristics for the 2011, 2013, 2015, and 2017 fishing years. As
demonstrated in the most recent Cost and Earnings Report, as detailed
in the RIR for this action, the mean gross revenue for the population
of charter businesses was between $200,894 (in 2012) and $302,609 (in
2013). These estimates are based on self-reported sales and revenues of
charter trips (not necessarily charter vessel fishing trips for
halibut) and include client referrals/booking commission revenue as
well as revenue accrued by leasing a CHP. These estimates do not
account for values derived from additional accommodations or food/
beverage service.
Based on the difference between the Small Business Administration
(SBA) threshold ($14 million) and the mean revenue for charter
businesses reported in the RIR, the available evidence indicates that
all directly regulated businesses and associated charter halibut guides
are considered ``small.'' If a business was large enough, potentially
including lodging and multiple recreational activities, it is possible
it could exceed the SBA threshold. However, there is no data to
identify if or how many businesses may fit into this category, thus all
businesses are considered ``small.''
Moreover, there is no available data to determine the relationship
charter guides have to the business (e.g., owner/operator, hourly or
salaried employee, contracted partnership, etc.). However, given the
relative difference between estimated gross revenue at the business
level and the $14 million threshold, those guides that represent a
separate entity are very likely still considered a small entity by SBA
standards. Similarly, CQEs, MWRs and the RQE are considered to be small
entities due to their relationship to the charter fishery. Analysis of
the QS purchase limitations of one percent annually and ten percent
total are estimated to produce total value of just over $2 million in
annual revenue by year ten in IPHC regulatory area 2C, and
approximately $5.6 million in total value annual value after ten years
in IPHC regulatory area 3A. Thus, the CQE and RQE entities are
considered to be directly regulated small entities.
Description of Significant Alternatives That Minimize Adverse Impacts
on Small Entities
The action alternative analyzed two options for funding the RQE.
The first, and the basis of this action, is the stamp paid for by CHP
holders with the stamp fees potentially passed on to individual charter
vessel anglers. The second alternative is an annual CHP holder fee
collection. Note that charter vessel anglers are considered individuals
and not directly regulated small entities under the RFA definition.
However, as demonstrated in this IRFA, based on the information that is
available, all charter halibut businesses and charter vessel guides are
considered to be directly regulated small entities. Charging an annual
CHP holder-based fee that did not vary depending on the number of
charter vessel anglers served may disproportionately impact some
directly regulated small entities. The stamp method of fee collection
would utilize a market-based approach to fund the RQE that is
proportional to each CHP holder's use of the resource. There would be
costs associated with this action; however, development of the
administrative elements of this action selected options designed to
maximize efficiency and benefits to the directly regulated entities.
These choices include allowing holders of multiple CHPs to pool their
stamps for use on any of those CHPs, rolling unused stamps over to the
next fishing year, disallowing transfers of stamps, and utilizing
preexisting electronic systems for purchasing stamps. Furthermore, this
action was supported by charter halibut fishery stakeholders. The
analysis of benefits of the stamp fee collection funding mechanism
indicates that this is a generally beneficial action in that it
provides individual charter vessel anglers with potential opportunities
for eased restrictions on halibut retention and greater business
opportunities for charter halibut businesses and charter vessel guides.
Thus, based upon the best available scientific data, it appears that
there are no significant alternatives to the action that have the
potential to accomplish the stated objectives of the section 106 of the
Driftnet Modernization and Bycatch Reduction Act, the Magnuson-Stevens
Act, the Halibut Act, and any other statutes, and minimize any
significant adverse economic impact of the action on small entities
while preventing overfishing.
[[Page 86781]]
Duplicate, Overlapping, or Conflicting Federal Rules
NMFS has not identified any duplication, overlap, or conflict
between this proposed rule and existing Federal rules.
Recordkeeping, Reporting, and Other Compliance Requirements
This proposed rule contains a collection-of-information requirement
subject to review and approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act (PRA). This proposed rule
revises the existing requirements for the collection of information for
OMB Control Number 0648-0575 (Alaska Halibut Fisheries: Charter) by
adding the purchase of charter halibut stamps, adding one new field to
the existing ADF&G logbook to record the number of stamps validated on
each charter vessel fishing trip, and adding appeals for an Initial
Administrative Determination (IAD) received for incomplete payment of
the charter halibut stamp fee liability. NMFS expects that every CHP
holder would purchase stamps at least once per season, and likely at
some periodic monthly or weekly interval. This proposed rule would not
change the number of respondents or the responses for the ADF&G
logbook. The ADF&G logbook is already completed for every charter
vessel fishing trip, and the stamp validation field would be required
to be completed for every charter vessel fishing trip that intends to
catch and retain halibut. These information collections are necessary
to collect fees, and administer, and enforce the RQE Program that was
requested by the charter halibut fishery stakeholders. Public reporting
burden is estimated to average 5 minutes to purchase charter halibut
stamps; 5 minutes for the ADF&G logbook, which includes 1 minute for
completing the additional field in the logbook; and 4 hours for
appeals. The public reporting burden includes 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. Submit comments on
these or any other aspects of the collection of information at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>. Notwithstanding any other provisions
of the law, no person is required to respond to, nor shall any person
be subject to a penalty for failure to comply with, a collection of
information subject to the requirements of the PRA, unless that
collection of information displays a currently valid OMB Control
Number.
List of Subjects
50 CFR Part 300
Administrative practice and procedure, Antarctica, Canada, Exports,
Fish Fisheries, Fishing, Imports, Indians, Labeling, Marine resources,
Reporting and recordkeeping requirements, Russian Federation,
Transportation, Treaties, Wildlife.
50 CFR Part 679
Alaska, Fisheries, Reporting and recordkeeping requirements.
Dated: October 25, 2024.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
For the reasons set out in the preamble, NMFS proposes to amend 50
CFR parts 300 and 679 as follows:
PART 300--INTERNATIONAL FISHERIES REGULATIONS
Subpart E--Pacific Halibut Fisheries
0
1. The authority citation for part 300, subpart E, continues to read as
follows:
Authority: 16 U.S.C. 773-773k.
0
2. Amend Sec. 300.61 by revising the definitions of ``Charter halibut
permit,'' ``Charter vessel,'' ``Charter vessel angler,'' ``Charter
vessel fishing trip,'' and ``Charter vessel guide'' to read as follows:
Sec. 300.61 Definitions.
* * * * *
Charter halibut permit means a permit issued by the National Marine
Fisheries Service pursuant to Sec. 300.67, and subject to requirements
in Sec. Sec. 300.65, 300.66, and 300.67 and 50 CFR 679.7(q) and
679.46.
Charter vessel, for purposes of Sec. Sec. 300.65, 300.66, and
300.67 and 50 CFR 679.7(q) and 679.46, means a vessel used while
providing or receiving sport fishing guide services for halibut, and,
for purposes of Sec. 300.63, means a vessel used for hire in
recreational (sport) fishing for Pacific halibut, but not including a
vessel without a hired operator.
Charter vessel angler, for purposes of Sec. Sec. 300.65, 300.66,
and 300.67 and 50 CFR 679.7(q) and 679.46, means a person, paying or
non-paying, receiving sport fishing guide services for halibut.
Charter vessel fishing trip, for purposes of Sec. Sec. 300.65,
300.66, and 300.67 and 50 CFR 679.7(q) and 679.46, means the time
period between the first deployment of fishing gear into the water from
a charter vessel by a charter vessel angler and the offloading of one
or more charter vessel anglers or any halibut from that vessel.
Charter vessel guide, for purposes of Sec. Sec. 300.65, 300.66,
and 300.67 and 50 CFR 679.7(q) and 679.46, means a person who holds an
annual sport fishing guide license or registration issued by the Alaska
Department of Fish and Game, or a person who provides sport fishing
guide services.
* * * * *
0
3. Amend Sec. 300.65 by revising paragraphs (d)(1)(ii) and
(d)(4)(ii)(B) introductory text and adding paragraph (d)(4)(ii)(B)(11)
to read as follows:
Sec. 300.65 Catch sharing plan and domestic management measures in
waters in and off Alaska.
* * * * *
(d) * * *
(1) * * *
(ii) The charter vessel guide is responsible for complying with the
reporting requirements of this paragraph (d) and 50 CFR 679.46. The
person whose business was assigned an Alaska Department of Fish and
Game Saltwater Sport Fishing Charter Trip Logbook is responsible for
ensuring that the charter vessel guide complies with the reporting
requirements of this paragraph (d) and 50 CFR 679.46.
* * * * *
(4) * * *
(ii) * * *
(B) Charter vessel guide requirements. If halibut were caught and
retained in Commission regulatory area 2C or 3A, the charter vessel
guide must record the following information (see paragraphs
(d)(4)(ii)(B)(1) through (10) of this section and 50 CFR 679.46) in the
Alaska Department of Fish and Game Saltwater Charter Logbook:
* * * * *
(11) Validation of charter halibut stamps. The charter vessel guide
is responsible for complying with the charter halibut stamp validation
requirements at 50 CFR 679.46.
* * * * *
0
4. Amend Sec. 300.67 by revising paragraph (a)(1) to read as follows:
[[Page 86782]]
Sec. 300.67 Charter halibut limited access program.
* * * * *
(a) * * *
(1) Requirements. In addition to other applicable permit,
licensing, or registration requirements, any charter vessel guide of a
charter vessel during a charter vessel fishing trip with one or more
charter vessel anglers catching and retaining Pacific halibut on board
must have on board the vessel an original valid charter halibut permit
or permits endorsed for the regulatory area in which the charter vessel
is operating and endorsed for at least the number of charter vessel
anglers who are catching and retaining Pacific halibut. Each charter
halibut permit holder must ensure that the charter vessel operator and
charter vessel guide of the charter vessel comply with all requirements
of Sec. Sec. 300.65 and 300.66, this section, and 50 CFR 679.46.
* * * * *
PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA
0
5. The authority citation for part 679 continues to read as follows:
Authority: 16 U.S.C. 773 et seq.; 1801 et seq.; 3631 et seq.;
Pub. L. 108-447; Pub. L. 111-281.
0
6. Amend Sec. 679.2 by adding in alphabetical order the definitions of
``Charter halibut permit,'' ``Charter halibut permit holder,''
``Charter halibut stamp,'' ``Charter halibut stamp validation,''
``Charter vessel,'' ``Charter vessel angler,'' ``Charter vessel fishing
trip,'' ``Charter vessel guide,'' ``Community charter halibut permit,''
and ``Military charter halibut permit'' to read as follows:
Sec. 679.2 Definitions.
* * * * *
Charter halibut permit (see Sec. 300.61 of this title).
Charter halibut permit holder, for purposes of Sec. 300.67 of this
title and Sec. 679.46, means the person identified on a charter
halibut permit, community charter halibut permit, or military charter
halibut permit.
Charter halibut stamp means an electronic stamp that is required
for each charter vessel angler, 18 years of age or older, for each day
and each charter vessel fishing trip on which the charter vessel angler
intends to catch and retain halibut on a charter vessel in
International Pacific Halibut Commission (IPHC) regulatory area 2C or
3A.
Charter halibut stamp validation means, with respect to the
Recreational Quota Entity Program fee collection, as described at Sec.
679.46, the charter vessel guide, as defined at Sec. 300.61 of this
title, recording the number of charter halibut stamps required for each
charter vessel fishing trip the charter vessel guide provides sport
fishing guide services, as defined at Sec. 300.61, in the ADF&G
saltwater charter logbook that is required by Sec. 300.65(d) of this
title.
Charter vessel (see Sec. 300.61 of this title).
Charter vessel angler (see Sec. 300.61of this title).
Charter vessel fishing trip (see Sec. 300.61 of this title).
Charter vessel guide (see Sec. 300.61 of this title).
* * * * *
Community charter halibut permit (see Sec. 300.61 of this title).
* * * * *
Military charter halibut permit (see Sec. 300.61 of this title)
* * * * *
0
7. Amend Sec. 679.4 by revising paragraphs (a)(1)(xv)(A) through (C)
to read as follows:
Sec. 679.4 Permits.
(a) * * *
(1) * * *
------------------------------------------------------------------------
Permit is in effect For more
If program permit or card type from issue date information, see
is: through the end of: . . .
------------------------------------------------------------------------
* * * * * * *
(xv) * * *.................... ...................... ................
(A) Charter halibut permit.... Until expiration date Sec. 300.67 of
shown on permit. this title and
Sec. 679.46.
(B) Community charter halibut Indefinite unless Sec. 300.67 of
permit. invalidated under this title and
Sec. Sec. 679.46.
679.46(a)(1)(vi)(D).
(C) Military charter halibut Indefinite unless Sec. 300.67 of
permit. invalidated under this title and
Sec. Sec. 679.46.
679.46(a)(1)(vi)(D).
* * * * * * *
------------------------------------------------------------------------
* * * * *
0
8. Amend Sec. 679.7 by adding paragraph (q) to read as follows:
Sec. 679.7 Prohibitions.
* * * * *
(q) Recreational Quota Entity Program. (1) Be a charter vessel
guide and use a charter vessel to fish for Pacific halibut in IPHC
regulatory area 2C or 3A unless the charter vessel guide has completed
a charter halibut stamp validation for each charter vessel angler who
is 18 years or older on board the charter vessel and intends to catch
and retain Pacific halibut for each charter vessel fishing trip on that
day.
(2) Be a charter vessel guide and perform a charter halibut stamp
validation after the charter vessel fishing trip has begun.
(3) Be a charter halibut permit holder and fail to purchase or hold
by the fee liability notice deadline specified in Sec. 679.46(a)(1)(v)
a number of charter halibut stamps equal to or greater than the number
of charter halibut stamp validations that were performed in a given
fishing year.
0
9. Add Sec. 679.46 to read as follows:
Sec. 679.46 Recreational Quota Entity (RQE) Program fee collection.
(a) Fee collection--(1) Charter halibut stamp. A charter halibut
stamp is required for charter vessel anglers, 18 years of age or older,
for each day and each charter vessel fishing trip they intend to catch
and retain halibut on a charter vessel in IPHC regulatory area 2C or
3A. This includes charter vessel anglers on charter vessels operated
under a charter halibut permit, community charter halibut permit, or
military charter halibut permit issued pursuant to Sec. 300.67 of this
title. A charter halibut permit holder is responsible for purchasing
the required number of charter halibut stamps and for complying with
all other requirements of this section. The required number of charter
halibut stamps is equal to or greater than the number of charter
halibut stamp validations (as defined at Sec. 679.2) performed in a
given fishing year for each charter halibut permit(s),
[[Page 86783]]
community charter halibut permit(s), or military charter halibut
permit(s).
(i) Validation of stamps. After determining the number of charter
halibut stamps required under this paragraph (a)(1), the charter vessel
guide must perform a charter halibut stamp validation as defined at
Sec. 679.2.
(ii) Duration of validation. The charter halibut stamp that has
received a charter halibut stamp validation, as defined at Sec. 679.2,
is in effect from the time, A.l.t, that it is validated until 2400
hours, A.l.t., the same day. For the purposes of charter halibut stamp
validation, if a charter vessel fishing trip lasts more than one
calendar day, a charter halibut stamp is required for each charter
vessel angler who is 18 years of age or older, for each calendar day
that the charter vessel angler intends to catch and retain halibut.
(iii) Non-transferability. Charter halibut stamps are not
transferable. This includes:
(A) After charter halibut stamp validation for an individual
charter vessel angler, the charter halibut stamp may not be transferred
to or used by any other person.
(B) Charter halibut stamps may only be used for associated charter
halibut permits in a given NMFS-approved account and may not be
transferred between approved accounts.
(iv) Rollover. A charter halibut stamp that has been purchased and
has not received charter halibut permit validation does not expire.
Such charter halibut stamps may be validated in a future fishing year.
(v) Fee liability. If, by 2400 A.l.t. on December 31 of a given
fishing year, a charter halibut permit holder, for one or more
associated charter halibut permits in a NMFS-approved account, has not
purchased a number of charter halibut stamps equal to or greater than
the number of charter halibut stamps validated under that account for
that same fishing year, the Regional Administrator will send a fee
liability notice to the charter halibut permit holder. The fee
liability notice will state the estimated fee liability, as determined
by the number of charter halibut stamps validated for that fishing year
in excess of the number of charter halibut stamps that have been
purchased. A charter halibut permit holder has 30 days from the date of
the notice to either pay the outstanding fee liability or demonstrate
how the fee liability determination is in error.
(vi) Underpayment of fee liability. If a charter halibut permit
holder does not pay the fee liability or demonstrate how the fee
liability determination is erroneous within 30 days as outlined in this
paragraph (a)(1)(vi), the Regional Administrator may:
(A) Issue an Initial Administrative Determination (IAD) upholding
the fee liability determination;
(B) Disapprove any transfer application of the charter halibut
permit, and all associated charter halibut permits in a NMFS approved
account, GAF, IFQ, or QS to or from the charter halibut permit holder
until the charter halibut stamp fee liability is paid, except that NMFS
may return unused GAF to the charter halibut permit holder's account
from which is was derived on or after the automatic GAF return date;
(C) Disapprove the annual registration application of a charter
halibut permit, and all associated charter halibut permits in a NMFS-
approved account, in accordance with Sec. 300.67(a) of this title,
until the charter halibut stamp fee liability is paid; and
(D) Invalidate a community charter halibut permit or military
charter halibut permit until the charter halibut stamp fee liability is
paid.
(vii) Appeals. A charter halibut permit holder who receives an IAD
for incomplete payment of the charter halibut stamp fee liability may
appeal the IAD pursuant to 15 CFR part 906.
(2) [Reserved]
(b) Fee amount. (1) The fee for a charter halibut stamp is $20.
(2) The RQE may petition NMFS to increase, decrease, or suspend the
fee for a charter halibut stamp beginning on January 1, 2028. The fee
for the charter halibut stamp may not increase by an amount more than
10 percent of the fee in the previous fishing year.
(c) Fee payment to NMFS--(1) Obtaining charter halibut stamps.
Charter halibut stamps must be obtained and applicable fees paid by
persons who:
(i) Have or are required to have a valid registration with ADF&G to
provide sport fishing guide services (Sec. 300.61 of this title) in
IPHC regulatory area 2C or 3A; and
(ii) Are a charter halibut permit holder.
(2) Charter vessel guide responsibilities. Before each charter
vessel fishing trip begins, the charter vessel guide is responsible for
ensuring there is a charter halibut stamp that has received charter
halibut stamp validation for each charter vessel angler, 18 years of
age or older, on board the charter vessel who intends to catch and
retain halibut.
(3) Fee payment. Fee payment must occur prior to the end of the
fishing year.
(d) RQE fee collection suspension. The Regional Administrator may
suspend the RQE fee collection indefinitely, or until such a time that
any identified RQE operational deficiencies are corrected, if:
(1) Through the issuance of an IAD and the opportunity to appeal
the IAD under 15 CFR part 906, the Regional Administrator determines
that the RQE is out of compliance with regulations in this title, the
RQE's own by-laws, or other applicable law;
(2) The Regional Administrator approves a petition by the RQE to
suspend the RQE fee collection; or
(3) Congress no longer provides authorization for the Secretary of
Commerce to collect and spend fees.
[FR Doc. 2024-25229 Filed 10-30-24; 8:45 am]
BILLING CODE 3510-22-P
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