Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Proposed Rules 77427 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 680 

[Docket No. 101214615–4999–01] 

RIN 0648–BA61 

Fisheries of the Exclusive Economic 

Zone Off Alaska; Bering Sea and 

Aleutian Islands Crab Rationalization 

Program 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: NMFS issues a proposed rule 

that would implement Amendment 31 

to the Fishery Management Plan for 

Bering Sea/Aleutian Islands King and 

Tanner Crabs (FMP). The proposed rule 

would make several changes to 

regulations governing the acquisition, 

use, and retention of quota share 

established for captains and crew, 

known as crew quota share or C shares, 

under the Crab Rationalization Program 

(CR Program). To implement 

Amendment 31, the proposed rule 

would: Temporarily expand the 

eligibility requirements for individuals 

wishing to acquire C share Quota Share 

(QS) by transfer; establish minimum 

participation requirements for C share 

QS holders to be eligible to receive an 

annual allocation of Individual Fishing 

Quota (IFQ); establish minimum 

participation requirements for C share 

QS holders to be eligible to retain their 

C share QS and establish an 

administrative process for revocation of 

an individual’s C share QS, if he or she 

fails to satisfy the minimum 

participation requirements; establish a 

regulatory mechanism to ensure that 

three percent of the total allowable 

catch (TAC) for each CR Program crab 

fishery is allocated as IFQ to holders of 

C share QS; and remove the prohibition 

on leasing C share IFQ. In addition, the 

proposed rule would implement a 

regulatory amendment to the CR 

Program that adjusts certain CR Program 

application deadlines. Specifically, the 

proposed rule would: Establish an 

earlier deadline for filing annual IFQ, 

individual processing quota (IPQ), and 

crab harvesting cooperative IFQ 

applications, which would increase the 

amount of time during which NMFS 

would suspend the processing of IFQ 

and IPQ transfer applications; shorten 

the amount of time in which to appeal 

an initial administrative determination 

to withhold issuance of IFQ or IPQ; and 

provide in the regulations that an 

applicant’s proof of timely filing for 

IFQ, IPQ, or cooperative IFQ would 

create a presumption of timely filing. 

Finally, the proposed rule would revise 

the reporting period and due date for CR 

Program registered crab receiver (RCR) 

Ex-vessel Volume and Value Reports. 

This action is necessary to ensure that 

individuals who hold C shares are 

active in the CR Program fisheries and 

to ensure that application deadlines 

provide adequate time to resolve 

disputes. This action is intended to 

promote the goals and objectives of the 

Magnuson-Stevens Fishery 

Conservation and Management Act, the 

FMP, and other applicable law. 

DATES: Comments must be received no 

later than January 23, 2015. 

ADDRESSES: You may submit comments 

on this document, identified by NOAA– 

NMFS–2010–0265, by any of the 

following methods: 

• Electronic Submission: Submit all 

electronic public comments via the 

Federal e-Rulemaking Portal. Go to 

www.regulations.gov/#!docketDetail;D=

NOAA-NMFS-2010-0265, click the 

‘‘Comment Now!’’ icon, complete the 

required fields, and enter or attach your 

comments. 

• Mail: Submit written comments to 

Glenn Merrill, Assistant Regional 

Administrator, Sustainable Fisheries 

Division, Alaska Region NMFS, Attn: 

Ellen Sebastian. 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 www.regulations.gov 

without change. All personal identifying 

information (e.g., name, address, etc.), 

confidential business information, or 

otherwise sensitive information 

submitted voluntarily by the sender will 

be publicly accessible. NMFS will 

accept anonymous comments (enter ‘‘N/ 

A’’ in the required fields if you wish to 

remain anonymous). Attachments to 

electronic comments will be accepted in 

Microsoft Word, Excel, or Adobe PDF 

file formats only. 

Written comments regarding the 

burden-hour estimates or other aspects 

of the collection-of-information 

requirements contained in this action 

may be submitted to NMFS at the above 

address and by email to OIRA_

Submission@omb.eop.gov or fax to 202– 

395–7285. Electronic copies of 

Amendment 31, the Regulatory Impact 

Review/Initial Regulatory Flexibility 

Analysis (RIR/IRFA) and the categorical 

exclusion prepared for this action—as 

well as the Environmental Impact 

Statement prepared for the CR 

Program—may be obtained from http:// 

www.regulations.gov or from the Alaska 

Region Web site at http://

alaskafisheries.noaa.gov. NMFS 

determined that this proposed action 

was categorically excluded from the 

need to prepare an environmental 

assessment under the National 

Environmental Policy Act. 

FOR FURTHER INFORMATION CONTACT: 

Karen Palmigiano, 907–586–7228. 

SUPPLEMENTARY INFORMATION: The king 

and Tanner crab fisheries in the 

exclusive economic zone of the Bering 

Sea and Aleutian Islands (BSAI) are 

managed under the Fishery 

Management Plan for Bering Sea/

Aleutian Islands King and Tanner Crabs 

FMP (FMP). The FMP was prepared by 

the North Pacific Fishery Management 

Council (Council) under the MagnusonStevens Fishery Conservation and 

Management Act (Magnuson-Stevens 

Act) as amended by the Consolidated 

Appropriations Act of 2004 (Public Law 

108–199, section 801). Regulations 

implementing the FMP, including the 

CR Program, are primarily located at 50 

CFR part 680. 

Background 

Overview of CR Program and C Shares 

The CR Program is a limited access 

privilege program that allocates the 

harvest of certain crab fisheries 

managed under the FMP among 

harvesters, processors, and coastal 

communities. Under the CR Program, 

NMFS issued four types of quota share 

(QS) to persons based on their 

qualifying harvest histories in certain 

BSAI crab fisheries during a specific 

period of time defined under the CR 

Program. The four types of QS are 

catcher vessel owner (CVO), catcher 

processor owner (CPO), catcher vessel 

crew (CVC), and catcher processor crew 

(CPC). CVC and CPC QS are also known 

as ‘‘crew shares’’ or ‘‘C shares.’’ At the 

beginning of the CR Program, NMFS 

issued 97 percent of the QS as owner 

QS, either CVO or CPO, and issued the 

remaining three percent as C shares, 

either CVC or CPC. 

NMFS issued C shares to individuals 

holding State of Alaska Commercial 

Fisheries Entry Commission (CFEC) 

Interim Use Permits, generally vessel 

captains, who met specific historic and 

recent participation requirements in CR 

Program fisheries. NMFS did not issue 

C shares to individuals who did not 

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77428 Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Proposed Rules 

meet both the historic and recent 

participation criteria. After the initial 

issuance of C shares, individuals may 

only acquire C shares through transfer. 

Each year, a QS holder submits a 

timely and complete ‘‘Application for 

Annual Crab Individual Fishing Quota 

(IFQ) Permit’’ in order to receive an 

exclusive harvest privilege for a portion 

of the total allowable catch (TAC) for 

each CR Program fishery in which the 

person holds QS. This harvest privilege 

is conferred as IFQ, and provides the QS 

holder with an annual allocation of 

pounds of crab for harvest in a specific 

CR Program crab fishery during the year 

in which it was allocated. The size of 

each annual IFQ allocation is based on 

the amount of QS held by a person in 

relation to the total QS pool in a crab 

fishery. For example, an individual 

holding C share QS equaling one 

percent of the C share QS pool in a crab 

fishery would receive IFQ to harvest one 

percent of the annual TAC allocated to 

C share QS in that crab fishery. NMFS 

issues holders of CVO QS two types of 

IFQ: Class A IFQ, which must be 

delivered to a processor holding a 

matching amount of IPQ, and Class B 

IFQ, which may be delivered to any 

registered crab receiver. Current 

regulations do not require C share IFQ 

to be matched with IPQ, and C share 

IFQ may be delivered to any registered 

crab receiver, similar to Class B CVO 

IFQ (see § 680.40(2)(b)(iii)). 

When initially establishing C shares, 

the Council intended that individuals 

holding C shares be active in CR 

Program fisheries. To ensure active 

participation by crew, the CR Program 

requires the holder of C shares to be 

onboard the vessel when their C share 

IFQ is harvested (the ‘‘holder on-board’’ 

requirement) and prohibits holders of C 

shares from leasing their C share IFQ 

except in the case of a hardship. 

However, the CR Program exempts a 

holders of C shares from these two 

requirements if the holder of C shares 

has joined a crab harvesting cooperative 

and the holder’s C share IFQ is 

converted to cooperative IFQ. The CR 

Program also includes participation 

criteria that must be satisfied for an 

individual to be eligible to receive C 

share QS by transfer. To receive C share 

QS by transfer, current regulations 

require an applicant to meet eligibility 

requirements at the time of transfer. To 

meet these eligibility requirements, an 

individual may submit an Application 

for BSAI Crab Eligibility to Receive QS/ 

PQS by Transfer in advance of, or 

concurrently with, their Application for 

Transfer of Crab QS or PQS. The 

regulations require that an individual 

must be a U.S. citizen with (1) at least 

150 days of sea time as part of a 

harvesting crew in any U.S. commercial 

fishery; and (2) participation as crew in 

one of the CR Program fisheries in the 

365 days prior to the date the transfer 

application is submitted to NMFS. If 

NMFS determines that an individual is 

eligible to receive C share QS by 

transfer, that individual would be 

required to submit proof of participation 

as crew in one of the CR Program 

fisheries in the 365 days prior to the 

date of their application to transfer QS 

if more than 365 days has elapsed 

between NMFS’ determination of 

eligibility and the submission of the 

transfer application. (See regulations at 

§ 680.41 (c)(2)(ii)(C).) 

Annually, C share IFQ is assigned 

based on the individual’s underlying 

QS. In a CR Program fishery, the annual 

allocation of IFQ assigned to any person 

(p) is based on the TAC for that crab QS 

fishery (f) less the allocation to the 

Western Alaska Community 

Development Quota (CDQ) Program and 

the Western Aleutian Islands golden 

king crab fishery. As expressed in 

regulations at § 680.40(h), the annual 

IFQ allocation calculation is as follows: 

• IFQ TACf = TACf ¥ (Western Alaska 

CDQ Program + Western Aleutian 

Islands golden king crab fishery) 

• IFQpf = IFQ TACf * (QSpf/QSf) 

Based on these calculations, a person 

holding one percent of the QS in a CR 

Program fishery (QSpf) would receive 

IFQ to harvest one percent of the annual 

TAC in that CR Program fishery. 

Crab Cooperative, IFQ, and IPQ 

Application Deadlines 

Under current regulations, the crab 

fishing year begins on July 1 and ends 

on June 30. Annually, QS and PQS 

holders must apply for allocations of 

IFQ and IPQ, respectively, for the 

upcoming crab fishing year. QS holders 

apply for annual IFQ through an 

individual application. They must 

indicate on this application whether or 

not they are joining a cooperative. If 

they are joining a cooperative that year, 

the cooperative’s annual IFQ 

application must include the QS 

holder’s annual IFQ application (or a 

copy of that application). Because IPQ is 

not subject to cooperative management, 

a PQS holder applies for IPQ directly to 

NMFS, and NMFS issues IPQ directly to 

the PQS holder. Under the current 

regulations, all applications for IFQ, 

IPQ, and cooperative IFQ must be filed 

with the NMFS Restricted Access 

Management Program (RAM) by August 

1. Although the crab fishing year begins 

on July 1, the individual crab fisheries 

open at different times later in the crab 

fishing year. Until recently, the first crab 

fishery to open, the Aleutian Islands 

golden king crab fishery, opened on 

August 15; the remaining crab fisheries 

open on October 15 or later in the crab 

fishing year. In March 2014, the State of 

Alaska changed the opening date for the 

Aleutian Islands golden king crab 

fishery to August 1 to allow for fishing 

to occur slightly earlier in the summer 

months when it is safer for the fishers. 

To aid QS and PQS holders in meeting 

the application deadline, NMFS 

provides application forms on its Web 

site (see ADDRESSES), highlights the 

application deadline on the site, and 

sends notices to QS and PQS holders 

near the end of the crab fishing year 

reminding them to apply for IFQ or IPQ 

for the next crab fishing year. 

Generally, 30 to 40 QS and PQS 

holders fail to file their applications for 

IFQ or IPQ by the August 1 deadline 

each year. When this occurs, RAM 

sends an Initial Administrative 

Determination (IAD) to the QS or PQS 

holder. The IAD notifies the QS or PQS 

holder of the holder’s failure to file in 

a timely manner and states that the 

holder will not receive an annual 

allocation of IFQ or IPQ. The IAD also 

states that the QS or PSQ holder has the 

right to appeal the IAD by submitting an 

appeal to NMFS within 60 days of the 

date of the IAD. RAM typically issues 

IADs for failure to timely file an 

application for IFQ or IPQ before the 

middle of August. Alaska Department of 

Fish and Game (ADF&G) typically 

announces TAC information for a 

majority of the CR Program fisheries 

around September 30, and RAM issues 

most IFQ and IPQ permits early in 

October, in order to allow share 

matching to occur prior to the October 

15 start date for most of the CR Program 

crab fisheries. 

To ensure that access to an annual 

allocation is not lost should a QS or 

PQS holder prevail on appeal of the 

IAD, RAM holds in reserve the amount 

of IFQ or IPQ in dispute until final 

agency action on the IAD is reached. In 

some instances, final agency action is 

reached before RAM issues IFQ and IPQ 

for the upcoming crab fishing year, 

allowing RAM to either issue the IFQ or 

IPQ to the successful appellant or return 

the IFQ or IPQ to the general pool for 

distribution if the IAD was not appealed 

or the appellant was unsuccessful in the 

appeal. However, in instances where a 

final agency action is not reached before 

RAM issues IFQ and IPQ for the 

upcoming crab fishing year, NMFS must 

continue to hold the disputed IFQ or 

IPQ in reserve. 

The need for NMFS to hold disputed 

IFQ or IPQ in reserve could lead to 

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Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Proposed Rules 77429 

unintended repercussions for the other 

QS and PQS holders who are not 

involved in the dispute. As mentioned 

previously, NMFS issues CVO QS as 

either Class A IFQ, which must be 

delivered to a Registered Crab Receiver 

(RCR) with a matching amount of 

unused IPQ, or Class B IFQ, which may 

be delivered to any RCR and does not 

require a matching amount of IPQ. 

Regulations require that Class A IFQ be 

matched with IPQ within five days after 

RAM issues the annual IFQ and IPQ for 

a crab fishery. Class A IFQ and IPQ are 

issued by fishery in equal amounts to 

facilitate this share matching 

requirement. Therefore, any Class A IFQ 

or any IPQ that is held in reserve 

pending appeal can result in unusable 

IFQ and/or IPQ, which equals 

unharvested pounds of crab. For 

example, if 100 pounds of Class A IFQ 

is held in reserve pending appeal, 

NMFS will still issue 100 pounds of IPQ 

to match the amount of reserved Class 

A IFQ. This is necessary in order to 

ensure that should the IFQ held in 

reserve be issued, the IFQ holder can 

match that IFQ with IPQ as required by 

regulation. If the IFQ subject to appeal 

is never issued (because the applicant 

fails to appeal or the appeal is denied), 

then the processor holding the matching 

IPQ cannot use that IPQ. The reverse is 

also true; if 100 pounds of IPQ is held 

in reserve pending appeal and then 

never issued, the 100 pounds of 

matching Class A IFQ cannot be used by 

the harvesting sector. 

Need for Action 

At its June 2007 meeting, the Council 

received public testimony and 

recommendations from its Advisory 

Panel advocating for modifications to 

the participation requirements for 

acquisition and use of C shares. 

Participants in the CR Program fisheries 

raised the following issues: 

• At least 750 former crew, who did 

not receive an initial allocation of C 

shares but who were active in CR 

Program fisheries in the five years 

preceding implementation of the CR 

Program, are no longer active in CR 

Program fisheries due to the significant 

reduction in the number of vessels 

participating in CR Program fisheries 

subsequent to implementation of the CR 

Program. 

• The current eligibility requirement 

for recent participation in one of the CR 

Program crab fisheries prevents 

acquisition of C shares by individuals 

formerly active in CR Program fisheries, 

but who are no longer a participant due 

to the significant fleet contraction and 

resulting loss of crew positions on crab 

boats. 

• Estimates of available information 

indicate that approximately 30 percent 

(70 individuals) of the individuals who 

received an initial allocation of C share 

QS (239 individuals) have remained 

active in the CR program fisheries, 

while approximately 70 percent (169 

individuals) have not remained active in 

CR program fisheries. 

• The regulations intended to keep C 

share QS holders active in the fisheries 

are not working due to the exemptions 

from these active participation 

requirements for holders of C shares 

who join a crab harvesting cooperative. 

Given this information, the Council 

determined that the current eligibility 

requirements for the acquisition of C 

shares have the effect of preventing 

some displaced, long-time captains and 

crew from acquiring C shares and that 

temporary modifications are necessary 

to increase the pool of individuals 

eligible to acquire C shares by transfer. 

The Council also determined that 

revisions to the current active 

participation requirements are necessary 

to establish reasonable participation 

requirements for holders of C shares and 

to ensure that they remain active in the 

fisheries. At its April 2008 meeting, the 

Council made final recommendations 

that formed the basis for Amendment 31 

to the FMP and this proposed rule. 

After taking action on Amendment 31, 

the Council received the 5-year review 

of the CR Program at its December 2010 

meeting. The 5-year review identified 

problems resulting from the insufficient 

amount of time available for NMFS to 

resolve IFQ and IPQ application 

disputes prior to the date by which 

NMFS must issue IFQ, IPQ, and 

cooperative IFQ. Based on this 

information, the Council requested that 

staff prepare an analysis examining an 

alternative that would provide NMFS 

with adequate time to resolve 

application disputes and decrease the 

likelihood of potential mismatches of 

Class A IFQ and IPQ pools. At its April 

2011 meeting, the Council 

recommended three actions: (1) Moving 

the application deadline for annual IFQ 

and IPQ permits to an earlier date; (2) 

shortening the time in which to file an 

appeal; and (3) providing that an 

applicant’s proof of timely filing for 

IFQ, IPQ, or cooperative IFQ would 

create a presumption of timely filing. 

The Proposed Actions 

This proposed rule would make 

several changes to regulations governing 

the acquisition, use, and retention of C 

share QS under the CR Program. To 

implement Amendment 31, the 

proposed rule would: (1) Temporarily 

expand the eligibility requirements for 

individuals wishing to acquire C share 

QS by transfer; (2) establish minimum 

participation requirements for C share 

QS holders to be eligible to receive an 

annual allocation of IFQ; (3) establish 

minimum participation requirements for 

C share QS holders to be eligible to 

retain their C share QS and establish an 

administrative process for revocation of 

an individual’s C share QS if he or she 

fails to satisfy the minimum 

participation requirements; (4) establish 

a regulatory mechanism to ensure that 3 

percent of the TAC for each CR Program 

crab fishery is allocated as IFQ to 

holders of C share QS; and (5) remove 

the prohibition on leasing C share IFQ. 

Additionally, this proposed rule 

would implement a regulatory 

amendment adopted by the Council. 

The regulatory amendment would make 

three changes in the annual application 

process for IFQ, IPQ, and cooperative 

IFQ in the CR Program. Unlike the 

proposed modifications summarized 

above to implement Amendment 31, 

these three proposed modifications do 

not require an amendment to the FMP. 

They do, however, result from a 

Regulatory Impact Review/Initial 

Regulatory Flexibility Analysis (RIR/

IRFA) and recommendations by the 

Council and are consistent with the 

FMP. Specifically, the proposed rule 

would: (1) Establish June 15 as the 

deadline for filing annual IFQ, IPQ, and 

cooperative IFQ applications, which 

would also increase the amount of time 

during which NMFS would suspend the 

processing of IFQ and IPQ transfer 

applications; (2) shorten the amount of 

time in which to appeal an initial 

administrative determination to 

withhold issuance of IFQ or IPQ from 60 

days to 30 days; and (3) provide in the 

regulations that an applicant’s proof of 

timely filing an application for IFQ, IPQ, 

or cooperative IFQ would create a 

presumption of timely filing. Finally, to 

accommodate the change to the season 

opening date for the Aleutian Islands 

golden king crab fishery, the proposed 

rule would revise the reporting period 

for RCR Ex-vessel Volume and Value 

Reports from August 15 through April 

30 to August 1 through May 31. Detailed 

explanations of the proposed regulatory 

changes are provided in the following 

paragraphs. 

Modify Active Participation 

Requirements To Acquire C Shares 

Current regulations state that to 

receive C shares by transfer, a person 

must be an individual with at least 150 

days of sea time in a harvest capacity in 

a U.S. commercial fishery and have 

been active as a crewmember in one of 

the CR Program fisheries in the 365 days 

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prior to submission of a transfer 

application to NMFS. Under this 

standard, captains and crew displaced 

by fleet contraction that have not found 

a position in one of the CR Program 

fisheries would not be permitted to 

acquire C shares until they participated 

in a landing. Based on the significant 

fleet contraction that occurred at the 

inception of the CR Program, it is likely 

that as many as two-thirds of the 

persons that would have met this 

standard prior to the implementation of 

the CR program would not currently 

meet this standard. To understand the 

effects of the status quo, the impacted 

individuals have been separated into 

two groups: Individuals that received an 

initial allocation, and individuals that 

did not receive an initial allocation. 

When NMFS implemented the CR 

Program in 2005, NMFS made initial 

allocations of C share QS to CFEC 

permit holders that were individuals 

(i.e., a natural person who is not a 

corporation, partnership, association, or 

other such entity), U.S. citizens, and 

who met the following historical and 

recent participation requirements: 

(A) Had historical participation as 

crew in the fishery demonstrated by 

being the individual named on a State 

of Alaska Interim Use Permit for a QS 

crab fishery and made at least one legal 

landing per year for any 3 eligibility 

years under that permit based on data 

from fish tickets maintained by the State 

of Alaska. 

(B) Had recent participation as crew 

in the fishery demonstrated by being the 

individual named on a State of Alaska 

Interim Use Permit for a QS crab fishery 

and made at least one legal landing 

under that permit in any 2 of 3 seasons 

based on data from fish tickets 

maintained by the State of Alaska. 

Based on these criteria, 239 

individuals received initial allocations 

of C share QS. These individuals were 

mostly captains because most of the 

named permit holders on ADF&G fish 

tickets were captains. Some individuals, 

who had participation in the crab 

fisheries similar to the individuals who 

received C share QS, were not eligible 

to receive C share QS because they were 

not the named permit holders on 

ADF&G fish tickets. These individuals 

were primarily crewmembers and some 

captains. 

Under the current regulations, those 

individuals who received initial 

allocations of C share QS but were 

unable to find a position on a vessel due 

to vessel contraction, are unable to 

acquire C share QS because they do not 

meet the participation requirements. 

Also, a number of individuals who 

received an initial allocation of C share 

QS are unable to acquire C share QS 

because they are believed to have not 

maintained their activity in the 

fisheries. NMFS believes that since the 

2009–2010 fishing year, on average, 

only approximately 100 individuals 

who received an initial allocation under 

the CR Program still participate in the 

CR Program. 

The second group of individuals who 

are unable to acquire C share QS are 

those individuals who were not a part 

of the initial allocation of C share QS in 

2005. Under the current regulations, 

these individuals are unable to acquire 

C share QS by transfer because they do 

not meet the current eligibility 

requirement for participation in a CR 

crab fishery in the 365 days prior to 

submission of an application for transfer 

of C share QS (i.e., the recent 

participation requirement). The 

regulations at § 680.41(c)(2)(ii)(C) state 

that participation as crew can be proved 

by providing evidence of at least one 

delivery of a CR crab species through 

the submission of an ADF&G fish ticket 

imprinted with the applicant’s State of 

Alaska permit card, an IFQ landing 

receipt showing the applicant 

individual as the hired master, or an 

affidavit from the vessel owner attesting 

to the applicant’s participation in a 

delivery. Given the participation 

requirements in the current regulations, 

captains and crew who: (1) Did not 

receive an initial allocation, (2) were 

displaced from CR Program fisheries 

due to significant fleet consolidation, 

and (3) have not found work in one of 

the CR Program fisheries have been 

unable to demonstrate recent 

participation in a CR crab delivery and 

therefore cannot acquire C shares by 

transfer. 

The Council determined that the 

current regulations do not allow 

individuals who participated in BSAI 

crab fisheries before implementation of 

the CR Program, and who may or may 

not have qualified for an initial 

allocation of QS, to reenter the fishery 

because they cannot qualify under the 

365-day recent participation 

requirement. The Council also 

determined that current active 

participation requirements for acquiring 

C share QS by transfer may be overly 

burdensome for some captains and crew 

because of changes in fishing practices 

and fleet consolidation resulting from 

implementing the CR Program. 

Based on public testimony and input 

from its Advisory Panel, the Council 

recommended modifications to the 

eligibility requirements for acquisition 

of C share QS by transfer to allow for a 

transitional eligibility period, during 

which individuals who have been 

unable to meet the recent participation 

requirement would be able to acquire C 

shares through relaxed participation 

requirements. The transitional eligibility 

period also would allow those 

individuals who are no longer active in 

the crab fisheries to either begin actively 

participating in the fishery or divest of 

their shares. The Council recommended, 

based on the RIR/IRFA and public 

testimony, that the transitional 

eligibility period should be limited to 

four years. The Council determined, and 

NMFS agrees, that this period would 

provide ample time to obtain C shares 

for those individuals looking to remain 

active in the fisheries, or divest C shares 

for those individuals who are no longer 

interested in participating. 

Therefore, this proposed rule would 

modify the eligibility requirements for 

the transfer of C share QS, to include an 

exception where the eligibility 

requirements are less restrictive than the 

current requirements. Specifically, the 

proposed rule would permit during a 

transitional eligibility period the 

transfer of C share QS to an individual 

who is a U.S. citizen with at least 150 

days of sea time as part of a harvesting 

crew in any U.S. commercial fishery 

and who either: (1) Received an initial 

allocation of CVC or CPC QS, or (2) 

participated in at least one delivery of 

crab from a fishery in the CR program 

in three of the five crab fishing years 

prior to the start of the CR Program, 

starting with the 2000/2001 crab fishing 

year through the 2004/2005 crab fishing 

year. The transitional eligibility period 

would be limited to four years. 

Under this proposed rule, both initial 

recipients of C share QS as well as 

individuals who did not receive an 

initial allocation but who participated 

in CR crab fisheries for three of the five 

years prior to the start of the CR 

program, would be eligible to receive C 

share QS. Under the proposed rule, 

initial recipients of C share QS would be 

those individuals who received an 

initial allocation of C share QS 

regardless of whether those individuals 

still hold their initial allocation of C 

share QS. Because the proposed rule 

does not modify the current eligibility 

criteria at § 680.41(c)(1)(vii), an 

individual may acquire C share QS 

using either the existing eligibility 

criteria, or the exception proposed in 

this rule. The intended effect of the 

proposed change is to temporarily 

expand the pool of individuals eligible 

to acquire C share QS by transfer to 

include individuals who were active in 

the crab fishery immediately prior to 

implementation of the program, but who 

do not meet the current recent 

participation requirement for activity in 

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the 365 days preceding the transfer. 

Therefore, under this proposed rule, an 

individual may be eligible to acquire C 

share QS under the existing eligibility 

criteria, as well as the exception that 

would be added to the regulations under 

this proposed rule. Acceptable evidence 

for the proposed new eligibility criteria 

would be the same as for the current 

eligibility criteria at § 680.41(c)(2)(ii)(C). 

The eligibility criteria added by this 

proposed rule would exist only for a 

period of four years from the effective 

date of this final rule, if Amendment 31 

is approved. The proposed relaxation of 

the eligibility criteria would provide 

individuals formerly active in CR 

program fisheries, but who may not 

have been able to continue active 

participation in the CR crab fisheries, 

with an opportunity to acquire C share 

QS during the period of time in which 

current holders of C shares would be 

transitioning into compliance with the 

active participation requirements for 

holders of C shares that also would be 

imposed by this proposed rule. The 

proposed four-year duration of the 

relaxed eligibility criteria for acquiring 

C share QS by transfer coincides with 

the initial period of time in which C 

share QS holders would be required to 

transition into the active participation 

requirements developed by the Council 

and proposed in this rule. The Council 

determined and NMFS agrees that 

extending the proposed relaxed 

eligibility criteria beyond this 

transitional period is not necessary 

because the transitional period is not 

meant to allow individuals who have 

not participated in a CR Program fishery 

to join at any time because they have 

some type of historic participation. 

Instead, the transitional period is 

intended to be a remedy for those 

individuals wishing to become C share 

QS holders that were squeezed out by 

consolidation and were not able to get 

back into the fishery. The Council and 

NMFS determined that four years would 

be sufficient time for those individuals 

to acquire C share QS, find a position 

on a boat, and participate in CR Program 

fisheries without overwhelming the 

fisheries with too many individuals and 

not enough positions. After this 

transitional period, the relaxed 

eligibility criteria that would be 

implemented by this proposed rule 

would no longer be available. 

The benefit to those receiving 

eligibility for acquiring C share QS 

during the transitional period and the 

effects on the market for C share QS 

could be influenced by several factors. 

If C share QS holders must be active in 

the crab fisheries to receive IFQ and 

retain C share QS, or if C share QS 

holders must divest after a period of 

inactivity, both of which would be 

required under this proposed rule and 

explained in the following sections, the 

transitional eligibility period could have 

minimal effects on individuals receiving 

the eligibility. An individual who 

becomes eligible to purchase C share QS 

during the proposed transitional 

eligibility period would be expected to 

satisfy participation requirements for C 

share QS holders and much less likely 

to purchase C share QS if the individual 

would not be eligible to receive IFQ or 

would be required to divest his or her 

C share QS holdings after a period of 

inactivity. 

However, the relaxed eligibility 

criteria may have an adverse effect on 

individuals currently active as captains 

and crew in the CR Program fisheries. 

Competition for C share QS may 

increase with increased demand and 

with limited space for crew and 

captains, individuals may find more 

competition for jobs. However, 

individuals who do not currently have 

a position on a boat may be less 

interested in obtaining C share QS, and 

if there are more individuals interested 

and able to purchase C share QS, this 

may provide an opportunity for those 

individuals no longer wanting to remain 

active in the fishery to sell their shares 

for a competitive price. 

Active Participation Requirements for 

Annual Issuance of C Share IFQ 

The current regulations require 

individuals who receive C share IFQ to 

be on board the vessel harvesting those 

IFQ and prohibit the individual from 

leasing his or her C share IFQ. However, 

if a C share QS holder joins a 

cooperative, the IFQ from that C share 

QS are allocated to the cooperative, and 

the ‘‘holder onboard’’ requirement as 

well as the leasing prohibition no longer 

apply with respect to those IFQ. This 

disparate treatment of individual 

holders of C share QS who are members 

of a cooperative versus holders of C 

share QS who are not members of a 

cooperative has had several effects, 

which were not the intention of the 

Council when it created the CR Program 

and C shares. First, the exemptions from 

the ‘‘holder onboard’’ requirement and 

the leasing prohibition for holders of C 

shares who are members of a 

cooperative increase the incentive for 

holders of C shares to join a cooperative 

and essentially nullify the requirement 

for the holders of C shares to be onboard 

a vessel to harvest their IFQ. Since 

almost all holders of C share QS 

annually elect to join a cooperative, they 

do not have to be onboard the vessel 

while their C share IFQ are harvested 

and they are not prohibited from leasing 

their shares within the cooperative 

under the current requirements. While 

the Council intended to encourage the 

formation of cooperatives and the 

participation of holders of C shares as 

members in cooperatives, the Council 

expected that holders of C share would 

remain active as crew in the CR Program 

fisheries regardless of whether they 

were members of a cooperative. 

Additionally, NMFS expects that as 

active holders of C shares retire from 

captain and crew positions, many may 

elect to continue to remain members of 

cooperatives and retain their C share 

holdings, effectively reducing the 

number of holders of C shares who are 

actively participating in the fisheries. 

Lastly, the market for C shares could be 

less fluid under the current active 

participation requirements for crew, 

because individuals who retire or exit 

the fisheries are still able to retain their 

C shares and benefit from them through 

cooperative membership. NMFS expects 

that if only active captains and crew 

would be permitted to hold and receive 

benefits from C shares, the market for 

these shares would be more active and 

fluid, since individuals who retire or 

exit the fisheries would be required to 

transfer their C shares. 

The Council’s original intent for 

including C share QS in the CR Program 

was to maintain active participation in 

the crab fisheries by those QS holders. 

However, this has not happened. 

Instead, there is a strong incentive for 

individuals who hold C shares to join a 

cooperative and not be onboard the 

vessel for harvest of their IFQ. These 

exemptions have made the current 

participation requirements for holders 

of C shares essentially ineffective. 

Examining the activity of holders of C 

shares in the past few years of the CR 

Program provides perspective on the 

effects of the Council’s and NMFS’ 

proposed changes. According to RAM 

catch data, during the 2010/2011 crab 

fishing year, 108 of the 207 holders of 

C shares in the CR Program fisheries are 

estimated to not have participated in the 

preceding three seasons. NMFS does not 

know whether these holders of C shares 

were active as crew, as no data is kept 

on crew participation. NMFS expects 

that the share of the C share QS pool 

held by inactive individuals is a 

substantial portion of the C share QS 

pool. 

This proposed rule revises the 

regulations to establish active 

participation requirements that a C 

share QS holder must satisfy to receive 

an annual allocation of C share IFQ. 

Under this proposed rule, C share QS 

holders would be required to 

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demonstrate active participation as crew 

over a rolling, three-year period of time 

by either: (1) Participating in at least one 

delivery of crab in a CR program fishery 

or (2) if the C share QS holder is an 

individual who received an initial 

allocation of C share QS, participating at 

least 30 days in either State of Alaska or 

Federal Alaska commercial fisheries. 

Initial recipients of C share QS, who 

choose to satisfy the proposed 

requirements through participation as 

crew in State of Alaska or Federal 

Alaska commercial fisheries, would 

need a minimum of 30 days of 

participation as crew during the threeyear period, and that participation could 

be earned in State of Alaska commercial 

fisheries, U.S. commercial fisheries 

conducted in the U.S. Exclusive 

Economic Zone off Alaska, i.e., Federal 

Alaska commercial fisheries, or a 

combination of both. A C share QS 

holder who does not meet the proposed 

active participation requirements every 

three years would not receive an annual 

IFQ allocation. 

In order to demonstrate active 

participation as crew for issuance of 

IFQ, a C share QS holder would be 

required to complete a ‘‘statement of 

participation’’ that would be part of the 

annual Application for Crab IFQ. 

Beginning with IFQ applications for the 

2015/2016 crab fishing year, a C share 

QS holder would have to state whether 

he or she: (1) Participated in at least one 

delivery of crab in any CR fishery 

during the crab fishing year 

immediately preceding the crab fishing 

year for which the holder is applying, or 

(2) if the holder was an initial recipient 

of CVC or CPC QS, participated in State 

of Alaska or Federal Alaska commercial 

fisheries during the crab fishing year 

immediately preceding the crab fishing 

year for which the QS holder is 

applying. If a C share QS holder answers 

‘‘Yes’’ to either question, the holder 

would be required to attach evidence 

demonstrating that they participated as 

a crew member. Acceptable evidence of 

participation as crew would be ADF&G 

fish tickets imprinted with the 

applicant’s State of Alaska permit card 

and signed by the applicant, an affidavit 

from the vessel owner supporting the 

applicant’s participation as crew, or 

signed receipts for IFQ crab landings on 

which the applicant was acting as the 

permit holder’s crab IFQ hired master. 

Although an applicant would be 

required to complete the statement of 

participation starting with the 2015/

2016 Application for Crab IFQ, 

participation in the 2014/2015 crab 

fishing year would not count toward 

IFQ issuance for the 2018/2019 crab 

fishing year. The 3-year participation 

period for C share IFQ issuance would 

begin with the 2015/2016 crab fishing 

year, if Amendment 31 is approved. 

Because Amendment 31 would allow C 

share QS holders three crab fishing 

years in which to demonstrate 

compliance with the proposed 

participation requirements for issuance 

of C share IFQ, NMFS would not 

withhold issuance of C share IFQ for 

failure to meet participation 

requirements until the 2018/2019 crab 

fishing year. The proposed C share IFQ 

participation requirements would be 

required to be met on a rolling basis. 

Therefore, starting with the 2018/2019 

annual Application for Crab IFQ and 

each year thereafter, an applicant for C 

share IFQ would be required to 

demonstrate that he or she met the 

proposed participation requirements 

during the three crab fishing years 

preceding the crab fishing year for 

which the applicant is applying. 

The following hypotheticals illustrate 

the proposed participation requirements 

relative to the issuance of C share IFQ. 

In the first hypothetical, Individual Y is 

not an initial recipient of C share QS but 

has acquired C share QS by transfer. 

Under this proposed rule, in order to 

receive IFQ for the 2018/2019 crab 

fishing year, Individual Y would have to 

include evidence demonstrating 

participation as crew in at least one 

delivery in a CR Program fishery during 

the 2015/2016, 2016/2017, or 2017/2018 

crab fishing year with his or her annual 

Application for Crab IFQ. Individual Y 

participates in deliveries of crab in a CR 

Program fishery during the 2015/2016 

crab fishing year. Therefore, Individual 

Y would state in his or her Application 

for Crab IFQ for the 2016/2017 crab 

fishing year that he or she participated 

in the previous crab fishing year and 

would include evidence demonstrating 

this participation. NMFS would record 

this information, noting that because 

Individual Y satisfied the C share IFQ 

participation requirements in 2015/

2016, Individual Y would be eligible to 

receive C share IFQ under the 

participation requirements through the 

2018/2019 crab fishing year. In each 

Application for Crab IFQ where 

Individual Y includes evidence 

demonstrating participation as crew, 

NMFS would re-calculate the crab 

fishing year through which Individual Y 

would be eligible to receive IFQ. In this 

hypothetical, Individual Y would have 

to demonstrate participation as crew 

again in order to receive C share IFQ for 

the 2019/2020 crab fishing year. 

In the second hypothetical, if a C 

share QS holder fails to meet the IFQ 

participation requirements, NMFS 

would not issue IFQ. In this 

hypothetical, Individual X is an initial 

recipient of C share QS and currently 

holds C share QS. However, he or she 

has joined a cooperative and no longer 

actively participates on a fishing vessel. 

Under this proposed rule, in order to 

receive IFQ for the 2018/2019 crab 

fishing year, Individual X would have to 

once again participate as a member of a 

harvesting crew for at least one delivery 

of crab in a CR program fishery or for 

at least 30 days in a State of Alaska or 

Federal Alaska commercial fishery prior 

to submitting his or her Application for 

Crab IFQ for the 2018/2019 crab fishing 

year. If Individual X is unable to do this, 

NMFS would not issue IFQ to 

Individual X and would send Individual 

X a C share IFQ Withholding Notice. 

The notice would inform Individual X 

that he or she did not meet the active 

participation requirements in order to 

receive IFQ. Individual X would have 

30 days to provide NMFS with 

information demonstrating participation 

as required. If Individual X fails to 

submit the required information or 

submits insufficient information, NMFS 

would issue an Initial Agency 

Determination (IAD) that would 

describe NMFS’ initial findings and 

would provide instructions to appeal. If 

Individual X proceeds with an appeal 

and is able to provide documentation 

which shows that he or she participated 

as required, then NMFS would issue the 

IFQ. If Individual X is unable to 

successfully appeal the IAD, then NMFS 

would not issue the IFQ. 

Active Participation Requirements for 

Retention of C Share QS 

In addition to proposed active 

participation requirements to receive 

annual allocations of IFQ, C share QS 

holders also would be required to satisfy 

active participation requirements in 

order to retain their C share QS. Under 

the proposed rule, a C share QS holder 

who did not receive an initial allocation 

of C share QS would be required to 

participate as crew in at least one 

delivery in one of the CR Program 

fisheries during any four consecutive 

crab fishing years in order to retain his 

or her C share QS. A holder of C share 

QS who received an initial allocation of 

C share QS would be required to meet 

active participation requirements in one 

of two ways. Under the proposed rule at 

50 CFR 680.40(m), a C share QS holder 

who received an initial allocation of C 

share QS would be required to 

participate in as crew (1) at least one 

delivery in one of the CR Program crab 

fisheries during any four consecutive 

crab fishing years, or (2) at least 30 days 

of fishing in State of Alaska or Federal 

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Alaska commercial fisheries during any 

four consecutive crab fishing years in 

order to retain his or her C share QS. 

The first crab fishing year that would 

start the four-year participation period 

for retention of C share QS would be the 

2015/2016 crab fishing year. Similar to 

the proposed participation requirements 

for IFQ, the period in which C share QS 

holders would be required to 

demonstrate compliance in order to 

retain their C share QS is a rolling 

period that would be required to be met 

during any consecutive four-year 

period. Because C share QS holders 

would have four crab fishing years in 

which to satisfy the proposed 

participation requirements for retention 

of C share QS, NMFS would not initiate 

revocation proceedings until after June 

30, 2019. NMFS notes that because the 

proposed IFQ issuance participation 

requirements are the same as the 

proposed QS retention participation 

requirements but would be required to 

be met more frequently, a C shareholder 

who satisfies the proposed IFQ issuance 

participation requirements would also 

satisfy the proposed QS retention 

participation requirements. NMFS 

would remove revoked C share QS from 

the C share QS pool. 

The following hypothetical illustrates 

how NMFS would implement the active 

participation requirements for retention 

of C share QS in conjunction with the 

participation requirements for IFQ 

issuance. Individual Y is not an initial 

recipient of C share QS but has acquired 

C share QS by transfer. If Individual Y 

includes in his or her 2018/2019 

Application for Crab IFQ, evidence 

demonstrating participation as crew in 

deliveries in a CR Program fishery 

during the 2017/2018 crab fishing year, 

NMFS would determine that Individual 

Y met the participation requirements for 

IFQ issuance for the 2018/2019 crab 

fishing year, issue C share IFQ to 

Individual Y if all other requirements 

were met, and update its records to 

reflect that Individual Y is eligible to 

receive C share IFQ through the 2020/ 

2021 crab fishing year and to retain his 

or her C share QS through the 2021/

2022 crab fishing year. Individual Y 

would have to meet the proposed 

participation requirements no later than 

the 2020/2021 crab fishing year in order 

to receive IFQ for the 2021/2022 crab 

fishing year, and would have to meet 

the proposed participation requirements 

no later than the 2021/2022 crab fishing 

year to avoid C share QS revocation 

proceedings that would be added to 50 

CFR 680.43 by this proposed rule. If 

Individual Y is unable or chooses not to 

participate as would be required to 

retain her C share QS, then NMFS 

would issue a Notice of C Share QS 

Inactivity to Individual Y, providing 

him or her with 60 days to provide 

NMFS with information demonstrating 

participation as crew that meets the 

requirements of § 680.40(m). NMFS 

would issue an IAD if, after this period, 

NMFS determines that Individual Y has 

failed to meet the participation 

requirements. Individual Y would then 

have an opportunity to administratively 

appeal the IAD before revocation would 

become effective. If Individual Y loses 

the appeal or chooses not to appeal the 

IAD, then NMFS would revoke all of 

Individual Y’s C share QS. 

The proposed rule would not exempt 

holders of C shares who join a 

cooperative from the proposed 

participation requirements to receive C 

share IFQ or to retain C share QS. Under 

the proposed rule, all holders of C 

shares, regardless of whether they have 

joined a cooperative, would be required 

to meet the proposed participation 

requirements for receiving C share IFQ 

and retaining C share QS. Additionally, 

the proposed rule would remove the 

prohibition on leasing C share IFQ, 

which has been in effect since July 1, 

2008. The Council determined and 

NMFS agrees that the prohibition on 

leasing C share IFQ as a measure to 

ensure active participation would no 

longer be necessary under Amendment 

31 because holders of C shares would be 

required to satisfy specific participation 

requirements and these participation 

requirements would apply to all holders 

of C shares even when they are members 

of a cooperative. Because the proposed 

rule would permit the leasing C share 

IFQ, the hardship exemptions at section 

680.41(e)(3) are removed. These 

hardship exemptions are applicable 

when a prohibition on leasing C share 

IFQ is in effect, but would no longer be 

necessary when the prohibition on 

leasing C share IFQ is removed. 

The Council recommended and 

NMFS supports revocation of C share 

QS, if the QS holder continues to be 

inactive, as an incentive for C share QS 

holders to divest so that the QS is not 

held inactive for extended periods of 

time. As the RIR/IRFA for this action 

explains at section 2.4.2, some current 

C share QS holders do not apply for C 

share IFQ; therefore the proposed active 

participation requirements for issuance 

of C share IFQ alone would not be 

effective at achieving the Council’s goal 

of making holders of C shares active 

participants in the fisheries. The 

incentive for inactive C share QS 

holders to divest their QS could be 

rather minor absent a potential for 

revocation. The Council and NMFS 

anticipate that most inactive C share QS 

holders would divest before any QS is 

revoked by NMFS. In addition, active C 

share QS holders or those active crew 

members looking to acquire C share QS 

would also benefit from an increase in 

QS availability in the market. 

Maintenance of C Share IFQ Allocation 

at Three Percent of the Annual TAC 

Under the CR Program, the Council 

initially allocated 97 percent of the QS 

pool to vessel owners as catcher vessel 

owner (CVO) and catcher processor 

owner (CPO) QS and the remaining 

three percent as C share QS. Because the 

amount of IFQ issued annually is a 

function of the number of QS units and 

the annual TAC amount for a given 

fishery, the annual IFQ allocation 

generally reflects the same 97 percent 

allocation to vessel owners and three 

percent to vessel crew. For example, if 

Person Z owns two percent of the 97 

percent of vessel owner QS and the TAC 

is 3,000,000lbs, then Person Z would 

receive IFQ for 58,200lbs, because 97 

percent of 3,000,000lbs is 2,910,000lbs 

and two percent of that is 58,200lbs. 

This allocation method maintains the 

intended QS and IFQ percentages 

originally implemented by the Council. 

However, the proposed revocation of C 

share QS could affect the 97/3 split, 

reducing the amount of C share QS to 

less than three percent of the QS pool 

and consequently reducing the amount 

of IFQ allocated to holders of C shares. 

The Council’s proposed revocation of 

inactive C share QS could cause some 

C share QS to be removed from the QS 

pool. Removing C share QS from the QS 

pool could reduce the C share QS below 

the three percent level originally 

established by the Council. 

To ensure that C share QS yields IFQ 

at the three percent level intended by 

the Council, the proposed rule would 

modify the regulations to carry the ratio 

into the calculation of IFQ and 

specifically allocate 97 percent of the 

IFQ TAC for each CR crab fishery to 

CVO and CPO IFQ, and three percent of 

the IFQ TAC for each CR crab fishery to 

C share IFQ. The three percent 

allocation to C share IFQ would be 

divided among eligible CVC and CPC 

QS holders based on the proportion of 

C share QS they own. By separating the 

calculation of IFQ allocations to C share 

QS holders from allocation of IFQ to 

vessel owner QS holders, the allocation 

of IFQ to C share QS holders would be 

maintained at three percent of the IFQ 

TAC, regardless of whether some C 

share QS is revoked and removed from 

the C share QS pool. 

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Modification of IFQ, IPQ, and 

Cooperative Application Deadlines 

Annually, QS holders are required to 

apply for IFQ either through an 

individual application, if not joining a 

cooperative, or through an application 

submitted by the cooperative manager 

as part of a cooperative application. 

Applications are currently due to NMFS 

Restricted Access Management Program 

(RAM) by August 1 with most crab 

fishing seasons beginning on October 

15. PQS holders, similarly, must file 

applications annually by August 1 to 

receive IPQ. IPQ are not subject to 

cooperative management. Instead, the 

applications are filed by the PQS holder 

with IPQ issued directly to the PQS 

holder. To aid QS holders and PQS 

holders in avoiding untimely 

applications, NMFS maintains 

applications on its Web site, highlights 

the deadline on that site, and sends 

reminders to QS holders and PQS 

holders near the end of the crab fishing 

year to apply by the deadline for the 

next year. 

RAM processes annual applications 

for cooperatives and individual QS 

holders before issuing IFQ and IPQ. 

During this period, RAM reviews the 

applications to ensure information is 

correctly recorded and QS holder filings 

are consistent with the applications of 

cooperatives to which they belong. 

Ownership and affiliation information 

that is part of or accompanying 

applications is reviewed to verify cap 

compliance and to determine the 

qualification of applicants to receive 

Class B IFQ (as QS holders with 

affiliations with PQS holders are issued 

Class A IFQ up to the amount of IPQ 

issued to its affiliates). Reconciliation of 

these affiliations is necessary to ensure 

Class A IFQ and Class B IFQ allocations 

are correctly apportioned for each 

recipient, as a correction of a Class A 

IFQ issuance may require reissuance of 

all IFQ to adjust the proportion of Class 

A IFQ to Class B IFQ for each recipient. 

Reissuance of IFQ would result in 

additional contracting costs, and 

possible changes in associations 

depending on choices of IFQ and IPQ 

holders to maintain the original 

matches. To ensure correct issuance of 

IFQ and IPQ (including the prescribed 

distribution of Class B IFQ derived from 

PQS holder affiliations), NMFS does not 

process any transfers of QS and PQS 

from the date applications for IFQ and 

IPQ are due until issuance of those IFQ 

and IPQ. 

A further complication in the process 

is that a large number of applications 

(about 1/3) are received within just a 

few days of the filing deadline. It is also 

common for RAM to receive duplicate 

and triplicate applications, which may 

contain discrepancies that must be 

reconciled with the submitters. 

Applications must then be compared to 

QS and PQS holder files to identify 

persons who have failed to file by the 

application deadline. Each year, about 

30 to 40 persons fail to file applications 

for IFQ or IPQ, or have issues with their 

applications. These persons are sent an 

Initial Administrative Determination 

(IAD) notifying them of either their 

failure to file or the discrepancies in 

their application, and informing them 

that they will not receive an annual 

allocation of IFQ or IPQ. Persons 

receiving an IAD may challenge the 

findings by notifying NMFS of their 

intent to appeal within 60 days of the 

date the IAD is issued. 

In the event of an appeal, NMFS 

upholds the rights of a party to an 

annual allocation by holding the 

contested amount of IFQ or IPQ 

(whichever is the case) until NMFS 

reaches a Final Agency Action. At 

times, NMFS is able to reach Final 

Agency Action prior to the agency’s 

issuance of IFQ and IPQ, thereby 

allowing the agency to either issue IFQ 

or IPQ to the successful appellant, or 

deny issuance to the unsuccessful 

appellant and re-calculate the amount of 

IFQ and IPQ to the other eligible 

applicants. However, if NMFS is unable 

to reach Final Agency Action prior to 

the agency’s issuance of IFQ and IPQ, 

then NMFS continues to hold the 

contested amount of IFQ or IPQ, but 

issues IFQ and IPQ to the other eligible 

applicants. If the quota in question is 

either Class A IFQ or IPQ, then holding 

that quota could cause a mismatch in 

those pools with a portion of the 

corresponding pool rendered unusable. 

For example, if NMFS does not issue 

100 pounds of Class A IFQ, then 100 

pounds of IPQ would typically be 

available for use, but under the current 

regulations, they cannot be used due to 

the withheld IFQ. Most quota holders 

who are denied annual allocations by 

RAM for failing to submit a timely 

application typically do not appeal the 

denial, or in some cases they appeal, but 

do not prevail. However, regardless of 

the outcome, due to the length and rigor 

of the appeal process, it is almost 

impossible for NMFS to reach Final 

Agency Action prior to agency issuance 

of IFQ and IPQ to eligible applicants. 

When appellants prevail, issuance of the 

IFQ or IPQ typically occurs after the 

fishing season has opened and after the 

IFQ/IPQ matching period has occurred. 

To address these timing issues, the 

Council recommended and NMFS 

proposes three modifications to the 

current regulations: (1) Move the IFQ, 

IPQ and cooperative application 

deadline to June 15 from the current 

date of August 1; (2) reduce, from 60 

days to 30 days, the amount of time in 

which to file an appeal of an initial 

administrative determination (IAD) that 

denies an allocation of IFQ or IPQ for 

failure to submit a timely application; 

and (3) provide that an applicant’s proof 

of timely filing would create an explicit 

regulatory presumption of timely filing. 

The first measure would provide 

substantially more time (an additional 

45 calendar days) between the 

application deadline and issuance of 

quota to address disputes and possibly 

reach final agency action on allocations 

of IFQ or IPQ. If NMFS could finalize its 

decisions regarding allocations of IFQ or 

IPQ prior to agency issuance of quota, 

the potential for unusable quota would 

be reduced. Although not a factor at the 

time the Council recommended moving 

the application deadline to June 15, the 

proposed change to the application 

deadline also would accommodate a 

recent change by the State of Alaska to 

the start of the Aleutian Islands golden 

king crab fishery. The State moved the 

season opening date for this fishery to 

August 1 from August 15. Because this 

fishery has very few QS holders, RAM 

does not need much time to process 

applications between the application 

deadline and agency issuance of IFQ 

and IPQ. 

Because NMFS does not process 

transfers of QS or PQS during the time 

when NMFS is processing applications, 

the proposed June 15 application 

deadline would impose a restriction on 

QS and PQS holders. It would increase 

the amount of time during which the 

transfer of shares would be suspended, 

from June 15, rather than August 1, until 

NMFS issues IFQ or IPQ for that crab 

fishery, or until the State of Alaska 

announces that the crab fishery will not 

open for that crab fishing year. Moving 

the deadline to June 15 would create a 

period of approximately three and onehalf months during which NMFS would 

not process transfers. However, the 

Council and NMFS determined that this 

period of time would have a minimal 

effect on fishery participants, since most 

CR Program fisheries are not open 

during this period. Also, persons 

wishing to transfer QS or PQS can agree 

to transfers that would be processed by 

NMFS after IFQ and IPQ is issued. 

Thereby, getting around the time during 

which the transfers are suspended. 

The second measure would reduce 

the amount of time to appeal IADs that 

deny an allocation of IFQ or IPQ for 

failure to submit a timely application 

from 60 days to 30 days. Under the 

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current regulations, individuals have 60 

days to appeal any decision of the 

agency, including decisions to withhold 

IFQ or IPQ. The result is that the time 

period to appeal usually lasts until 

shortly after the date on which NMFS 

issues IFQ and IPQ. Even if these 

appeals are prioritized, appeals can take 

several weeks to months to be resolved. 

Consequently, unless a QS or PQS 

holder chooses not to contest NMFS’s 

decision to reject the application for IFQ 

or IPQ, there will likely be IFQ and IPQ 

withheld to satisfy due process 

requirements and to cover any finding 

in favor of the appellant. Additionally, 

depending on the timing, a successful 

appeal may result in NMFS issuing IFQ/ 

IPQ after the start of, or late into, the 

crab fishing season for that fishery. The 

shorter appeal period and earlier 

application deadline could also allow 

for the resolution of appeals before or 

early in the fishing season thereby 

minimizing disruption to fishing 

operations. 

The Council determined and NMFS 

agrees that a reduction in time to appeal 

from 60 days to 30 days for this type of 

decision would not treat the quota 

shareholder unfairly. NMFS makes 

every effort to ensure that participants 

receive notice of application deadlines 

and, typically, the administrators 

attempt to locate individuals failing to 

apply to ensure that failure is 

intentional. The issue in this type of 

appeal is whether the quota shareholder 

submitted a timely application; it is not 

whether a quota shareholder meets 

standards for initial eligibility to receive 

quota share. The shorter appeal period 

would apply only to IADs that deny an 

allocation of IFQ or IPQ for failure to 

submit a timely application and is 

intended to reduce the portions of the 

IFQ and IPQ pools that must be reserved 

by ensuring that administrators know 

which QS and PQS holders are 

disputing a denial, and possibly 

allowing for the resolution of appeals 

before or early in the season. 

This proposed rule also would 

substitute the appeals process set forth 

at § 679.43 with the appeal procedures 

at 15 CFR part 906. Under this proposed 

rule, an applicant would be able to 

appeal any CR Program IAD pursuant to 

the appeal procedures at 15 CFR part 

906. NMFS has established a National 

Appeals Office (NAO) located at NMFS 

Headquarters in Silver Spring, 

Maryland. In 2014, NMFS published a 

final rule implementing the rules of 

procedure for NAO appeals in 15 CFR 

part 906. (79 FR 7056, Feb. 6, 2014). The 

appeal procedures in 15 CFR part 906 

are mandatory for appeals in limited 

access privilege programs (LAPPs) 

under section 303A of the MagnusonStevens Act. 15 CFR 906.1(b). Section 

303A applies only to limited access 

privilege programs that were adopted 

after January 12, 2007, the date of 

enactment of the Magnuson-Stevens 

Fishery Conservation and Management 

Reauthorization Act of 2006. 16 U.S.C. 

1853a. The CR Program was 

implemented in March 2005; therefore, 

CR Program appeals are not required to 

be heard under the procedural rules at 

15 CFR part 906. NMFS may, however, 

request that NAO decide appeals in 

programs where NAO does not have 

mandatory jurisdiction. 15 CFR 

906.1(d). NMFS proposes to use NAO 

for appeals of CR Program IADs and to 

adopt 15 CFR part 906 as the procedural 

rules for CR Program appeals. In the 

past, NMFS Alaska Region had its own 

appeals office and its own procedural 

rules for appeal in 50 CFR 679.43. 

However, NMFS Alaska Region no 

longer has its own appeals office and 

therefore is opting to use the NAO and 

the procedural rules for the NAO. 

The third measure would provide an 

individual who possesses proof of 

timely filing of an application for IFQ or 

IPQ the presumption of having done so 

in instances where that NMFS has no 

record of receiving a complete and 

timely application. Proof could be in the 

form of a registered mail receipt if the 

application is mailed to NMFS, a 

confirmation page if the application is 

faxed to NMFS, or a delivery receipt 

from a commercial carrier. This 

proposed measure would serve to 

remind QS and PQS holders to maintain 

proof of their timely filing. By 

maintaining proof, the applicant may be 

able to avert a dispute concerning 

whether such filing was made; 

applicants who maintain adequate 

records of filing would likely resolve 

any dispute prior to receiving an IAD 

that an application was not filed. If the 

applicant filed an appeal, the 

applicant’s documentation of timely 

filing would support the appeal and 

could speed resolution of the appeal. 

Revisions to Registered Crab Receiver 

Reports 

As was mentioned in the previous 

section, the State of Alaska adjusted the 

dates of the Aleutian Islands golden 

king crab season so that the fishery will 

now open on August 1 instead of 

August 15. Currently, regulations at 

§ 680.5(m) require a RCR that also 

operates as a shoreside processor or 

stationary floating crab processor and 

receives and purchases landings of CR 

Program crab, to submit annually to 

NMFS a complete Ex-vessel Volume and 

Value Report for each reporting period 

in which the RCR receives CR Program 

crab. The current reporting time begins 

August 15 and extends through April 

30, which coveres all CR Program crab 

fishing seasons. If NMFS were to 

maintain the same reporting period, it 

would no longer cover all crab fishing 

seasons, and any deliveries of CR 

Program crab prior to August 15 and 

after April 30 would not be included in 

the report. Therefore, this proposed rule 

would change the reporting period to 

August 1 through May 31 to cover all CR 

program crab fisheries. The adjusted 

reporting period will allow the RCR to 

capture any deliveries that occur from 

the start of the season and any deliveries 

that occur shortly after the season has 

closed. The proposed rule would also 

adjust the due date for the report from 

May 15 to May 31. 

Classification 

Pursuant to sections 304(b)(1)(A) and 

305(d) of the Magnuson-Stevens Act, the 

NMFS Assistant Administrator has 

determined that this proposed rule is 

consistent with Amendment 31, the 

FMP, other provisions of the MagnusonStevens Act, and other applicable law, 

subject to further consideration after 

public comment. 

This proposed rule has been 

determined to be not significant for 

purposes of Executive Order 12866. 

An initial regulatory flexibility 

analysis (IRFA) was prepared, as 

required by Section 603 of the 

Regulatory Flexibility Act (RFA) that 

describes the economic impact the 

provisions of Amendment 31 (i.e., C 

share acquisition, use, and retention) in 

this proposed rule, if adopted, would 

have on small entities. Copies of the 

IRFA prepared for these provisions of 

Amendment 31 within the proposed 

rule are available from NMFS (see 

ADDRESSES). The IRFA incorporates by 

reference an extensive RIR/FRFA 

prepared for Amendments 18 and 19 to 

the FMP that detailed the impacts of the 

CR Program on small entities. 

The IRFA for the Amendment 31 

provisions of the proposed action 

describes the action, why this action is 

being proposed, the objectives and legal 

basis for the proposed rule, the type and 

number of small entities to which the 

proposed rule would apply, and the 

projected reporting, recordkeeping, and 

other compliance requirements of the 

proposed rule. It also identifies any 

overlapping, duplicative, or conflicting 

Federal rules and describes any 

significant alternatives to the proposed 

rule that accomplish the stated 

objectives of the Magnuson-Stevens Act 

and other applicable statutes and that 

would minimize any significant adverse 

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77436 Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Proposed Rules 

economic impact of the proposed rule 

on small entities. A summary of the 

RIR/IRFA follows. 

To implement Amendment 31, this 

proposed rule would relax the eligibility 

requirements to allow individuals who 

are currently not eligible to acquire C 

shares by transfer to become eligible, for 

a transitional period, for such 

transactions. This action would also 

establish minimum participation 

requirements for C share QS holders to 

be eligible to receive an annual 

allocation of Individual Fishing Quota 

(IFQ); establish minimum participation 

requirements for C share QS holders to 

be eligible to retain their C share QS and 

establish an administrative process for 

revocation of an individual’s C share 

QS, if he or she fails to satisfy the 

minimum participation requirements; 

establish a regulatory mechanism to 

ensure that three percent of the total 

allowable catch (TAC) for each CR 

Program crab fishery is allocated as IFQ 

to holders of C share QS; and remove 

the prohibition on leasing C share IFQ. 

The entities directly regulated by this 

action are individuals who currently 

hold C share QS, and individuals who 

were at one time active in the crab 

fisheries as captain and crew prior to 

the implementation of the CR Program 

but who are no longer active as captain 

or crew. The Small Business 

Administration defines a small 

commercial finfish fishing entity as one 

that has annual gross sales of less than 

$19 million; a shellfish fishing small 

entity is one with less than $5 million 

fishing operations are small if they have 

less than $7 million in gross revenue (78 

FR 37398, July 22, 2013). 

The IRFA estimates that 179 

individuals currently hold C shares. Of 

which, 70 are estimated to have been 

part of the 239 individuals who received 

an initial allocation of C shares based on 

their historical participation record. The 

IFRA also estimates that there are 750 

individuals who were active in the crab 

fisheries as captain and crew prior to 

the implementation of the CR Program 

but who are no longer active as captain 

or crew; the proposed rule would allow 

those individuals to acquire C shares by 

transfer for a period of four years. Thus, 

the IRFA estimates that approximately 

1100 individuals (750 who were active 

prior to rationalization, 239 who were 

initial recipients, and 109 who have 

since acquired C shares), would be 

impacted by the change in the 

regulations regarding the eligible 

individuals who would be able to 

acquire C shares by transfer in this 

proposed rule. 

Based on the SBA’s size standard, the 

Council and NMFS believe that all 

holders of C shares are small entities for 

purposes of the RFA. 

Three alternatives, including the no 

action alternative, were considered to 

relax the eligibility requirements for the 

acquisition of C shares by transfer. The 

first alternative creates eligibility for 

entities that received an initial 

allocation of C shares. The second 

alternative creates eligibility for entities 

with historical participation in the CR 

Program fisheries. The Council decided 

to select both of the action alternatives 

to full expand the eligibility to 

encapsulate all those entities who had 

historically participated in the crab 

fisheries prior to rationalization. The 

Council did not consider further 

expanding the eligibility to include 

entities that do not have any type of 

historical participation in the crab 

fisheries, because the original intent in 

establishing C shares was to provide an 

opportunity for entities with a 

connection to the crab fisheries, through 

participation, to own shares. 

This proposed rule contains a 

provision that no C shares would be 

revoked until 5 years after 

implementation of the amendment to 

the FMP. The Council intended that this 

provision would mitigate negative 

effects on individuals whose shares may 

be revoked by this action. The Council 

and NMFS considered two other options 

to delay revocations. Under the first, no 

revocations would have taken place 

until 5 years after implementation of the 

CR Program, which would have been 

the year 2010. The second option 

extended the period to 10 years after 

implementation of the CR Program, 

which would have been the year 2015. 

The preferred alternative would begin 

revocations 5 years after this proposed 

amendment is implemented. This 

alternative was selected because it 

would provide holders of C shares with 

certainty about the rules that will 

govern C shares and with time to 

consider business plans for their C 

shares. The preferred alternatives give 

holders of C shares time to plan whether 

to meet the new active participation 

requirements and retain their C shares 

or whether to divest their share 

holdings. 

For the proposed provision requiring 

active participation to receive annual 

IFQ from C shares, the preferred 

alternative requires active participation 

over a 3-year period. For the proposed 

provision requiring active participation 

requirement to retain C shares, the 

preferred alternative requires active 

participation over a 4-year period. Three 

categories of alternatives were 

considered for this provision: the status 

quo alternative, which essentially has 

no active participation requirement 

because holders of C shares can and do 

assign their shares to cooperatives; 

alternatives that would require less or 

no active participation in the fisheries to 

maintain C share holdings; and 

alternatives that would require greater 

levels of participation as crew. 

NMFS concluded that the status quo 

and the alternatives that require less 

participation to maintain C share 

holdings are inconsistent with the 

Council’s intent to ensure that C shares 

are held by individuals who are active 

in the fisheries and to create a pool of 

C shares for use exclusively by 

individuals who are active in the 

fisheries. NMFS examined alternatives 

that required higher levels of 

participation to maintain C share 

holdings or that required participation 

exclusively in CR Program fisheries. 

NMFS concluded that these alternatives 

unduly constrained holders of C shares, 

given the fleet consolidation and other 

changes in crab fishing under the CR 

Program. With fewer vessels active in 

the fisheries, greater competition for 

crew jobs is an obstacle to maintaining 

active participation in the CR Program 

fisheries. By allowing individuals to 

meet a minimal landing requirement to 

maintain their active participation 

status and by allowing individuals who 

are initial recipients of C shares to meet 

the active participation requirements 

through fishing in non-crab commercial 

fisheries in Alaska, the preferred 

alternative would allow individuals to 

miss some seasons, when crew jobs may 

be difficult to secure. NMFS concluded 

that the preferred alternative reaches a 

reasonable balance between alternatives 

that would allow extended absences 

from active participation in the fisheries 

and alternatives that would require 

greater participation in the CR Program 

fisheries, an approach which fails to 

recognize the nature of the market for 

employment in the CR Program 

fisheries. 

The Council did not consider an 

alternative to the regulatory mechanism 

to ensure three percent of the TAC for 

each CR Program fishery is allocated to 

holders of C share QS. Under the 

current regulations, approximately three 

percent of the IFQ pool is allocated as 

C share IFQ and 97 percent is allocated 

as owner share IFQ, as is required by the 

CR Program. However, with the new 

active participation provisions, and the 

potential for IFQ not to be allocated to 

entities which do not meet these 

provisions, there is a possibility that the 

C share IFQ allocation would be 

reduced. To ensure the C share IFQ pool 

remains at its intended levels, the 

Council requested a mechanism put in 

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place to maintain the C share IFQ pool 

at three percent of the IFQ pool, 

regardless of whether some holders of C 

share receive their annual IFQ 

allocation. 

This rule also proposes several 

regulatory amendments that are not 

contained in Amendment 31 to the 

FMP. Specifically, the proposed rule 

would establishes an earlier deadline for 

filing annual IFQ, individual processing 

quota (IPQ), and crab harvesting 

cooperative IFQ applications, which 

would increase the amount of time 

during which NMFS would suspend the 

processing of IFQ and IPQ transfer 

applications; shorten the amount of time 

in which to appeal an initial 

administrative determination to 

withhold issuance of IFQ or IPQ; and 

provide in the regulations that an 

applicant’s proof of timely filing for 

IFQ, IPQ, or cooperative IFQ would 

create a presumption of timely filing. 

Finally, the proposed rule would revise 

the reporting period and due date for CR 

Program registered crab receiver (RCR) 

Ex-vessel Volume and Value Reports. 

These provisions would directly 

regulate holders of QS, PQS and 

cooperatives formed under the CR 

Program. Each of the cooperatives in the 

program includes from several to 

hundreds of QS holders as members and 

has revenues in excess of the small 

entity threshold; however, during the 

2010–2011 fishing season, 64 QS 

holders elected not to join cooperatives. 

These 64 QS holders are all small 

entities for RFA purposes. 

The IRFA based its estimates of small 

entities holding PQS on the number of 

employees of PQS-holding entities. As 

of 2011, 21 entities hold PQS. The IRFA 

estimated large entities, based on 

available records of employment and 

knowledge of foreign ownership of 

processing companies. Of these 21 

entities, the IRFA estimated that 10 are 

large entities and 11 are small entities 

for RFA purposes. 

The IRFA for this action did not 

analyze additional alternatives to the 

second proposed action, because this 

proposed action is a technical change to 

conform to changes by ADF&G to the 

Aleutian Islands Golden King Crab 

season. The Council did consider 

whether application deadlines earlier or 

later than the preferred alternative 

would be appropriate. The IRFA 

identified the June 15 deadline as the 

most practical date. Dates later than 

June 15 are likely to provide limited 

benefit over the current August 1 

deadline. Dates later than June 15 are 

also unlikely to provide a benefit of 

avoiding withheld IFQ and IPQ that 

arise from unresolved administrative 

determinations of those allocations. The 

effects of unissued IFQ and IPQ shares 

may be more likely to fall on small 

entities because small entities may have 

less power to gain matching 

commitments from larger harvesting and 

processing interests for use of their 

Class A IFQ and IPQ to match with 

shares held by small entities. Similarly, 

the shortened 30-day period for 

appealing initial administrative 

determinations to withhold IFQ or IPQ 

is likely to have little effect on small 

entities’ decisions whether to appeal a 

denial, as the filing of an appeal is a 

relatively straightforward process. Small 

entities may be the beneficiaries of 

reduced mismatched IFQ and IPQ that 

could be avoided through achieving 

final agency action earlier. 

Collection-of-Information Requirements 

This proposed rule contains 

collection-of-information requirements 

subject to review and approval by the 

Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act (PRA). These requirements have 

been submitted to OMB for approval 

under OMB Control No. 0648–0514. 

Public reporting burden per response is 

estimated to average 2 hours for the 

Application for BSAI Crab Eligibility to 

Receive QS/PQS or IFQ/IPQ by 

Transfer; 2.5 hours for Application for 

Annual Crab Permit IFQ; 2.5 hours for 

Application for Annual Crab Permit 

IPQ; 30 minutes for Application for 

Converted CPO QS and CPO IFQ; 2.5 

hours for Application for Crab 

Harvesting Cooperative IFQ Permit; 4 

hours for Appeal for Denial of 

Application; 2.5 hours for Application 

for Transfer of Crab IFQ; 2.5 hours for 

Application for Transfer of Crab IPQ 

permit; 2 hours for the Crab 

Rationalization Program Registered Crab 

Receiver Ex-vessel Volume and Value 

Report; and 2 hours for Application for 

Transfer of a crab QS or PQS including 

the time for reviewing instructions, 

searching existing data sources, 

gathering and maintaining the data 

needed, and completing and reviewing 

the collection information. 

Public comment is sought regarding 

whether this proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

the accuracy of the burden estimate; 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and ways to minimize the 

burden of the collection of information, 

including through the use of automated 

collection techniques or other forms of 

information technology. 

Send comments on these or any other 

aspects of the collection of information, 

to NMFS (see ADDRESSES) and by email 

to OIRA_Submission@omb.eop.gov or 

fax to 202–395–7285. Notwithstanding 

any other provision of the law, no 

individual is required to respond to, and 

no person shall be subject to penalty for 

failure to comply with, a collection of 

information subject to the requirements 

of the PRA, unless that collection of 

information displays a currently valid 

OMB control number. 

List of Subjects in 50 CFR Part 680 

Alaska, Fisheries, Reporting and 

recordkeeping requirements. 

Dated: December 18, 2014. 

Samuel D. Rauch III, 

Deputy Assistant Administrator for 

Regulatory Programs, National Marine 

Fisheries Service. 

For the reasons set out in the 

preamble, 50 CFR part 680 is proposed 

to be amended as follows: 

PART 680—SHELLFISH FISHERIES OF 

THE EXCLUSIVE ECONOMIC ZONE 

OFF ALASKA 

■ 1. The authority citation for 50 CFR 

part 680 continues to read as follows: 

Authority: 16 U.S.C. 1862; Pub. L. 109– 

241; Pub. L. 109–479. 

■ 2. In § 680.4, revise paragraphs (f)(1) 

and (n)(1)(i), and add paragraph (q) to 

read as follows: 

§ 680.4 Permits. 

* * * * * 

(f) * * * 

(1) A complete application must be 

received by NMFS no later than June 15 

(or postmarked by this date, if sent via 

U.S. mail or a commercial carrier) for 

the upcoming crab fishing year for 

which a person is applying to receive 

IFQ or IPQ. If a complete application is 

not received by NMFS by this date, or 

postmarked by this date, the person will 

not receive IFQ or IPQ for the upcoming 

crab fishing year. In the event that 

NMFS has not received a complete and 

timely application by June 15, NMFS 

will presume that the application was 

timely filed if the applicant can provide 

NMFS with proof of timely filing. 

* * * * * 

(n) * * * 

(1)(i) A complete application must be 

received by NMFS no later than June 15 

(or postmarked by this date, if sent via 

U.S. mail or a commercial carrier) for 

the upcoming crab fishing year for 

which a person or crab harvesting 

cooperative is applying to receive 

converted CPO QS and the IFQ derived 

from that converted CPO QS. If a 

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complete application is not received by 

NMFS by this date, or postmarked by 

this date, the person or crab harvesting 

cooperative will not receive converted 

CPO QS and the IFQ derived from that 

converted CPO QS for the upcoming 

crab fishing year. In the event that 

NMFS has not received a complete and 

timely application by June 15, NMFS 

will presume that the application was 

timely filed if the applicant can provide 

NMFS with proof of timely filing. 

* * * * * 

(q) Initial administrative 

determination (IAD). The Regional 

Administrator will prepare and send an 

IAD to the applicant following the 

expiration of the 30-day evidentiary 

period if the Regional Administrator 

determines that the information or 

evidence provided by the applicant fails 

to support the applicant’s claims and is 

insufficient to establish that the 

applicant meets the requirements, or if 

the additional information, evidence, or 

revised application is not provided 

within the time period specified in the 

letter that notifies the applicant of his or 

her 30-day evidentiary period. The IAD 

will indicate the deficiencies in the 

application, including any deficiencies 

with the information, the evidence 

submitted in support of the information, 

or the revised application. The IAD will 

also indicate which claims cannot be 

approved based on the available 

information or evidence. An applicant 

who receives an IAD may appeal under 

the appeals procedures set forth at 15 

CFR part 906. If an applicant appeals an 

IAD denying an Application for Annual 

Crab IFQ, IPQ, or harvesting 

Cooperative IFQ Permit because the 

application was not timely filed, the 

appeal must be filed within 30 days 

after the date the IAD is issued. An 

applicant who avails himself or herself 

of the opportunity to appeal an IAD will 

not receive crab IFQ or IPQ until after 

the final resolution of that appeal in the 

applicant’s favor. 

■ 3. In § 680.5, revise paragraphs (m)(2) 

and (3) as follows: 

§ 680.5 Recordkeeping and reporting 

(R&R). 

* * * * * 

(m) * * * 

(2) Reporting period. The reporting 

period of the CR RCR Ex-vessel Volume 

and Value Report shall extend from 

August 1 through May 31 of the 

following year, inclusive. 

(3) Due Date. A complete CR RCR Exvessel Volume and Value Report must 

be received by the Regional 

Administrator no later than May 31 of 

the reporting period in which the RCR 

received CR crab. 

* * * * * 

■ 4. In § 680.21, revise paragraphs (b)(1), 

(b)(2) introductory text, and (d)(1) as 

follows: 

§ 680.21 Crab harvesting cooperatives. 

* * * * * 

(b) * * * 

(1) June 15 application deadline. A 

complete application must be received 

together with a signed annual 

application for crab IFQ/IPQ permit 

forms of all members of the crab 

harvesting cooperative, by NMFS no 

later than June 15 (or postmarked by 

this date, if sent via U.S. mail or a 

commercial carrier) for the upcoming 

crab fishing year for which the crab 

harvesting cooperative is applying to 

receive IFQ. If a complete application is 

not received by NMFS by this date, or 

postmarked by this date, the crab 

harvesting cooperative will not receive 

IFQ for the upcoming crab fishing year. 

In the event that NMFS has not received 

a complete and timely application by 

June 15, NMFS will presume that the 

application was timely filed if the 

applicant can provide NMFS with proof 

of timely filing. 

(2) Contents. A complete application 

must contain the following information: 

* * * * * 

(d) * * * 

(1) Transfer of QS. A member of a 

crab harvesting cooperative may acquire 

or divest QS at any time in accordance 

with the transfer procedures in § 680.41. 

However, transfers of QS that occur after 

the June 15 deadline for crab harvesting 

cooperative IFQ permit applications 

will not be reflected in the type or 

amount of IFQ permit issued to the crab 

harvesting cooperative for that crab 

fishing year. 

* * * * * 

■ 5. In § 680.40, 

■ a. Revise paragraph (g); 

■ b. Revise paragraph (h)(1); and 

■ c. Add paragraph (m) to read as 

follows: 

§ 680.40 Crab Quota Share (QS), 

Processor QS (PQS), Individual Fishing 

Quota (IFQ), and Individual Processor 

Quota (IPQ) Issuance. 

* * * * * 

(g) Annual allocation of IFQ. 

(1) General. IFQ is assigned based on 

the underlying QS. Except for CVC and 

CPC QS permit holders who fail to meet 

the participation requirements at 

paragraph (g)(2) of this section, the 

Regional Administrator shall assign crab 

IFQs to each person who holds QS and 

submits a complete annual application 

for crab IFQ/IPQ permit as described 

under § 680.4. IFQ will be assigned to a 

crab QS fishery with the appropriate 

regional designation, QS sector, and IFQ 

class. This amount will represent the 

maximum amount of crab that may be 

harvested from the specified crab QS 

fishery by the person to whom it is 

assigned during the specified crab 

fishing year, unless the IFQ assignment 

is changed by the Regional 

Administrator because of an approved 

transfer, revoked, suspended, or 

modified under 15 CFR part 904. 

(2) Eligibility for CVC and CPC IFQ. 

For each crab fishing year after June 30, 

2018, CVC and CPC QS will yield IFQ 

if the individual holding that CVC or 

CPC QS permit: 

(i) Has participated as crew in at least 

one delivery of crab in any CR crab 

fishery during the three crab fishing 

years preceding the crab fishing year for 

which the individual is filing an annual 

crab IFQ permit application; or 

(ii) Was an initial recipient of CVC or 

CPC QS and participated as crew in at 

least 30 days of fishing in a commercial 

fishery managed by the State of Alaska 

or in a U.S. commercial fishery in the 

U.S. Exclusive Economic Zone off 

Alaska during the three crab fishing 

years preceding the crab fishing year for 

which the individual is filing an annual 

crab IFQ permit application. Individuals 

may combine participation as crew in 

State and federal commercial fisheries 

to meet this requirement. 

(3) Withholding of CVC or CPC IFQ. 

Beginning July 1, 2018, the Regional 

Administrator will withhold issuance of 

CVC or CPC IFQ to an individual who 

has not met the participation 

requirements set forth in paragraph 

(g)(2) of this section. The Regional 

Administrator will withhold an 

individual’s CVC IFQ or CPC IFQ in 

accordance with the procedures set 

forth in paragraphs (g)(3)(i) and (ii) of 

this section. 

(i) Notice of C Share IFQ Withholding. 

The Regional Administrator will issue a 

Notice of C Share IFQ Withholding to an 

individual holding CVC or CPC QS if, 

after reviewing the CVC or CPC QS 

holder’s Applications for Annual Crab 

IFQ Permit, the Regional Administrator 

determines that the CVC or CPC QS 

holder has failed to meet the 

participation requirements in paragraph 

(g)(2) of this section. A CVC or CPC QS 

holder who receives such a Notice of C 

Share IFQ Withholding will have 30 

days to provide the Regional 

Administrator with information 

demonstrating participation as crew that 

meets the requirements of paragraph 

(g)(2) of this section. 

(ii) Initial administrative 

determination (IAD). The Regional 

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Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Proposed Rules 77439 

Administrator will prepare and send an 

IAD to the CVC or CPC QS holder 

following the expiration of the 30-day 

evidentiary period if the Regional 

Administrator determines that the 

information or evidence provided by the 

CVC or CPC QS holder fails to 

demonstrate participation as crew and is 

insufficient to rebut the information 

included in the CVC or CPC QS holder’s 

Applications for Annual Crab IFQ 

Permit, or if the additional information 

or evidence is not provided within the 

time period specified in the Notice of C 

Share IFQ Withholding. The IAD will 

explain the basis for the withholding of 

IFQ. A CVC or CPC QS holder who 

receives an IAD withholding IFQ may 

appeal under the appeals procedures set 

forth at 15 CFR part 906. A CVC or CPC 

QS holder who avails himself or herself 

of the opportunity to appeal an IAD 

withholding IFQ will not receive crab 

IFQ until after the final resolution of 

that appeal in the QS holder’s favor. 

(h) * * * 

(1) General. (i) The annual allocation 

of IFQ to any person (p) in any crab QS 

fishery (f) will be based on the TAC of 

crab for that crab QS fishery less the 

allocation to the Western Alaska CDQ 

Program (‘‘CDQ Reserve’’) and Western 

Aleutian Islands golden king crab 

fishery. Expressed algebraically, the 

annual IFQ allocation formula is as 

follows: 

(A) IFQ TACf = TACf ¥ (CDQ Reservef

+ Allocation for the Western 

Aleutian Island golden king crab 

fishery) 

(B) IFQpf = IFQ TACf × (QSpf/QS poolf) 

(ii) CVO, CPO, CVC, and CPC IFQ. 

Each year, 3 percent of the IFQ TACf

will be allocated as CVC IFQ or CPC IFQ 

and 97 percent of the IFQ TACf will be 

allocated as CVO IFQ or CPO IFQ. 

Expressed algebraically, the formulas for 

the annual IFQ allocations are as 

follows: 

(A) CVC/CPC IFQf = IFQ TACf × 0.03 

(B) CVO/CPO IFQf = IFQ TACf × 0.97 

* * * * * 

(m) Participation requirements for 

retention of CVC QS and CPC QS. (1) 

Beginning July 1, 2019, and each crab 

fishing year thereafter, individuals 

allocated CVC QS or CPC QS must meet 

the participation requirements set forth 

in paragraph (m)(2) of this section in 

order to retain their CVC QS or CPC QS. 

(2) An individual issued a CVC QS or 

CPC QS permit must demonstrate to 

NMFS that he or she: 

(i) Has participated as crew in at least 

one delivery of crab in any CR crab 

fishery during the previous four 

consecutive crab fishing years; or 

(ii) Was an initial recipient of CVC QS 

or CPC QS and participated as crew in 

at least 30 days of fishing in a 

commercial fishery managed by the 

State of Alaska or in a U.S. commercial 

fishery in the U.S. Exclusive Economic 

Zone off Alaska during the previous 

four consecutive crab fishing years. 

Individuals may combine participation 

as crew in State and Federal commercial 

fisheries to meet this requirement. 

(3) An individual issued a CVC QS or 

CPC QS permit may include information 

demonstrating compliance with the 

participation requirements in paragraph 

(m)(2) of this section with the 

individual’s annual Application for 

Crab IFQ. 

(4) If an individual issued a CVC QS 

or CPC QS permit fails to meet the 

participation requirements in paragraph 

(m)(2) of this section, NMFS will revoke 

all of the individual’s CVC QS or CPC 

QS in accordance with 50 CFR 680.43. 

■ 6. In § 680.41, revise paragraphs (b)(1), 

(c)(1)(vii) and (viii), (c)(2)(ii)(C), and 

(e)(3) to read as follows: 

§ 680.41 Transfer of QS, PQS, IFQ and IPQ. 

* * * * * 

(b) * * * 

(1) Application. An application is 

required to transfer any amount of QS, 

PQS, IFQ, or IPQ. A transfer application 

will not be approved until the necessary 

eligibility application has been 

submitted and approved by NMFS in 

accordance with paragraph (c) of this 

section. The Regional Administrator 

will not approve any transfers of QS, 

PQS, IFQ, or IPQ in any crab QS fishery 

from June 15 until either the date of the 

issuance of IFQ or IPQ for that crab QS 

fishery, or the date on which the State 

of Alaska announces that a crab QS 

fishery will not open for that crab 

fishing year. 

* * * * * 

(c) * * * 

(1) * * * 

Quota type Eligible person Eligibility requirements 

*******

(vii) CVC or CPC QS ........... An individual ....................... (A) Who is a U.S. citizen with: 

(1) At least 150 days of sea time as part of a harvesting crew in any U.S. commercial fishery, and 

(2) Recent participation as crew in at least one delivery of crab in a CR crab 

fishery in the 365 days prior to submission of the application for eligibility, 

(B) From [EFFECTIVE DATE OF FINAL RULE IMPLEMENTING AMENDMENT 31] 

until [DATE 4 YEARS AFTER EFFECTIVE DATE OF FINAL RULE IMPLEMENTING AMENDMENT 31], CVC or CPC QS also may be transferred to an individual who is a U.S. citizen with: 

(1) At least 150 days of sea time as part of a harvesting crew in any U.S. commercial fishery, and 

(2) Who either 

(i) Received an initial allocation of CVC or CPC QS; or 

(ii) Participated in at least one delivery of crab in a CR crab fishery in any 3 of 

the 5 crab fishing years starting on July 1, 2000, through June 30, 2005. 

(viii) CVC or CPC IFQ .......... All eligible individuals for 

CVC or CPC QS.

According to the requirements in paragraph (c)(1)(vii) of this section. 

* * * * * 

(2) * * * 

(ii) * * * 

(C) Eligibility for CVC or CPC QS/IFQ. 

Indicate (YES or NO) whether this 

application is intended for a person who 

wishes to buy CVC or CPC QS/IFQ. If 

YES, provide evidence demonstrating 

that the applicant meets the criteria set 

forth in paragraph (c)(1)(vii) of this 

section 680.41. Acceptable evidence is 

limited to an ADF&G fish ticket 

imprinted with the applicant’s State of 

Alaska permit card and signed by the 

applicant, an affidavit from the vessel 

owner, or a signed receipt for an IFQ 

crab landing on which the applicant 

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77440 Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Proposed Rules 

was acting as the permit holder’s crab 

IFQ hired master. 

* * * * * 

(e) * * * 

(3) IFQ derived from CVC QS or CPC 

QS. (i) IFQ derived from CVC or CPC QS 

may be transferred by lease on an 

annual basis. 

* * * * * 

■ 7. Revise § 680.43 to read as follows: 

§ 680.43 Revocation of CVC and CPC QS. 

(a) Beginning July 1, 2019, the 

Regional Administrator will revoke all 

CVC QS and CPC QS held by an 

individual who has not met the 

participation requirements set forth in 

§ 680.40(m). The Regional 

Administrator will revoke an 

individual’s CVC QS or CPC QS in 

accordance with the procedures set 

forth in this section. 

(b) Notice of C Share QS Inactivity. 

The Regional Administrator will issue a 

Notice of C Share QS Inactivity to an 

individual holding CVC or CPC QS if, 

after reviewing the CVC or CPC QS 

holder’s Applications for Annual Crab 

IFQ Permit, the Regional Administrator 

determines that the CVC or CPC QS 

holder has failed to meet the 

participation requirements in 

§ 680.40(m). A CVC or CPC QS holder 

who receives such a Notice will have 60 

days to provide the Regional 

Administrator with information 

demonstrating participation as crew that 

meets the requirements of § 680.40(m). 

(c) Initial administrative 

determination (IAD). The Regional 

Administrator will prepare and send an 

IAD to the CVC or CPC QS holder 

following the expiration of the 60-day 

evidentiary period if the Regional 

Administrator determines that the 

information or evidence provided by the 

CVC or CPC QS holder fails to 

demonstrate participation as crew and is 

insufficient to rebut the information 

included in the CVC or CPC QS holder’s 

Applications for Annual Crab IFQ 

Permit, or if the additional information 

or evidence is not provided within the 

time period specified in the Notice of C 

Share QS Inactivity. The IAD will 

explain the basis for the revocation 

determination. A CVC or CPC QS holder 

who receives an IAD for revocation may 

appeal under the appeals procedures set 

forth at 15 CFR part 906. A CVC or CPC 

QS holder who avails himself or herself 

of the opportunity to appeal an IAD for 

revocation will not receive crab IFQ or 

IPQ until after the final resolution of 

that appeal in the QS holder’s favor. 

[FR Doc. 2014–30155 Filed 12–23–14; 8:45 am] 

BILLING CODE 3510–22–P 

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