[Federal Register Volume 79, Number 247 (Wednesday, December 24, 2014)]
[Proposed Rules]
[Pages 77427-77440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30155]



[[Page 77427]]

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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.

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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:
    <bullet> 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.
    <bullet> 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 
<a href="/cdn-cgi/l/email-protection#511e1803100e0224333c382222383e3f113e3c337f343e217f363e27"><span class="__cf_email__" data-cfemail="440b0d16051b173126292d37372d2b2a042b29266a212b346a232b32">[email protected]</span></a> 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 Magnuson-
Stevens 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

[[Page 77428]]

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 Sec.  
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 Sec.  
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 Sec.  680.40(h), the annual IFQ 
allocation calculation is as follows:

<bullet> IFQ TAC<INF>f</INF> = TAC<INF>f</INF> - (Western Alaska CDQ 
Program + Western Aleutian Islands golden king crab fishery)
<bullet> IFQ<INF>pf</INF> = IFQ TAC<INF>f</INF> * (QS<INF>pf</INF>/
QS<INF>f</INF>)

    Based on these calculations, a person holding one percent of the QS 
in a CR Program fishery (QS<INF>pf</INF>) 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

[[Page 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:
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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

[[Page 77430]]

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 Sec.  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 Sec.  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

[[Page 77431]]

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 Sec.  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

[[Page 77432]]

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 three-
year 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

[[Page 77433]]

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 Sec.  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.

[[Page 77434]]

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 one-half 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

[[Page 77435]]

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 Sec.  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 Magnuson-Stevens 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 Sec.  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 Magnuson-Stevens 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

[[Page 77436]]

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

[[Page 77437]]

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 
<a href="/cdn-cgi/l/email-protection#bdf2f4effce2eec8dfd0d4ceced4d2d3fdd2d0df93d8d2cd93dad2cb"><span class="__cf_email__" data-cfemail="5a1513081b05092f38373329293335341a353738743f352a743d352c">[email protected]</span></a> 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

0
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.

0
2. In Sec.  680.4, revise paragraphs (f)(1) and (n)(1)(i), and add 
paragraph (q) to read as follows:


Sec.  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

[[Page 77438]]

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.
0
3. In Sec.  680.5, revise paragraphs (m)(2) and (3) as follows:


Sec.  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 Ex-vessel 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.
* * * * *
0
4. In Sec.  680.21, revise paragraphs (b)(1), (b)(2) introductory text, 
and (d)(1) as follows:


Sec.  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 Sec.  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.
* * * * *
0
5. In Sec.  680.40,
0
a. Revise paragraph (g);
0
b. Revise paragraph (h)(1); and
0
c. Add paragraph (m) to read as follows:


Sec.  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 Sec.  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

[[Page 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 TAC<INF>f</INF> = TAC<INF>f</INF> - (CDQ Reserve<INF>f</INF> + 
Allocation for the Western Aleutian Island golden king crab fishery)
(B) IFQ<INF>pf</INF> = IFQ TAC<INF>f</INF> x (QS<INF>pf</INF>/QS 
pool<INF>f</INF>)

    (ii) CVO, CPO, CVC, and CPC IFQ. Each year, 3 percent of the IFQ 
TAC<INF>f</INF> will be allocated as CVC IFQ or CPC IFQ and 97 percent 
of the IFQ TAC<INF>f</INF> will be allocated as CVO IFQ or CPO IFQ. 
Expressed algebraically, the formulas for the annual IFQ allocations 
are as follows:

(A) CVC/CPC IFQ<INF>f</INF> = IFQ TAC<INF>f</INF> x 0.03
(B) CVO/CPO IFQ<INF>f</INF> = IFQ TAC<INF>f</INF> x 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.
0
6. In Sec.  680.41, revise paragraphs (b)(1), (c)(1)(vii) and (viii), 
(c)(2)(ii)(C), and (e)(3) to read as follows:


Sec.  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     According to the requirements in
                                           for CVC or CPC QS.           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

[[Page 77440]]

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.
* * * * *
0
7. Revise Sec.  680.43 to read as follows:


Sec.  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 Sec.  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 Sec.  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 Sec.  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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