[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 [www.gpo.gov]
[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 https://www.regulations.gov/docket/NOAA-NMFS-2024-0099. 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 https://www.regulations.gov 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 
https://www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous).
    Electronic copies of the Regulatory Impact Review (RIR), and the 
Categorical Exclusion prepared for this action are available from 
https://www.regulations.gov 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 
https://www.reginfo.gov/public/do/PRAMain. 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 https://www.reginfo.gov/public/do/PRAMain. Notwithstanding any other provisions 
of the law, no person is required to respond to, nor shall any person 
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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