0665 Rev BD03 011614.ss

SUPPORTING STATEMENT

ALASKA COMMUNITY QUOTA ENTITY (CQE) PROGRAM

OMB CONTROL NO. 0648-0665

This is a resubmission of a revision of an existing information collection, with the final rule

[RIN 0648-BD03]. No changes were made to this proposed information collection, based on comments or for any other reason. Question 8 provides detailed information on applicable comments and responses.

BACKGROUND

The groundfish fisheries in the Exclusive Economic Zone (EEZ) off Alaska are managed by the National Marine Fisheries Service (NMFS) under the authority of the Magnuson-Stevens Fishery Conservation and Management Act, 16 U.S.C. 1801 et seq., as amended in 2006 (Magnuson-Stevens Act). Under the authority of the Magnuson-Stevens Act, the North Pacific Fishery Management Council (Council) developed the Fishery Management Plan for Groundfish of the Bering Sea and Aleutian Islands (BSAI), the Fishery Management Plan for Groundfish of the Gulf of Alaska (GOA), and the Individual Fishing Quota (IFQ) Program for the Fixed-Gear Commercial Fisheries for Pacific Halibut and Sablefish in Waters in and off Alaska.

The Pacific halibut fishery off Alaska is managed by NMFS under the authority of the Northern Pacific Halibut Act of 1982, and in coordination with annual fishery management measures adopted by the International Pacific Halibut Commission (IPHC) under the Convention between the United States and Canada for the Preservation of the Halibut Fishery of the Northern Pacific Ocean and Bering Sea (Convention). The IFQ Program provides a limited access system for Pacific halibut in Convention waters in and off Alaska and sablefish fisheries in waters of the EEZ off Alaska. Regulations pursuant to the Convention are set forth at 50 CFR 300.60 through 300.65. Regulations for the IFQ program are set forth at 50 CFR part 679.

The IFQ Program issues quota share (QS) to qualified persons. Halibut QS is issued specific to one of eight IPHC halibut management areas throughout the BSAI and GOA. The amount of halibut and sablefish that each QS holder may harvest is calculated annually and issued as IFQ in pounds. NMFS issues IFQ to persons holding Pacific halibut and sablefish QS or to those persons who are recipients of IFQ transfers from QS holders.

INTRODUCTION

BSAI Amendment 102 would create a Community Quota Entity (CQE) Program in IPHC halibut regulatory area 4B and sablefish Aleutian Islands regulatory area similar to the existing CQE Program in the GOA. This action would modify the IFQ Program to allow non-profit entities to represent small rural communities in the GOA with a historic participation in the halibut and sablefish fisheries to hold QS. This program would allow an eligible community to establish a designated non-profit organization as a CQE to purchase halibut catcher vessel QS assigned to Area 4B, and sablefish QS assigned to the Aleutian Islands. The CQE is the holder of the QS and would assign the resulting annual halibut and sablefish IFQ to participants according to defined CQE Program provisions. This program structure creates a permanent asset for the community to use by promoting community access to QS to generate participation in, and fishery revenues from, the commercial halibut and sablefish fisheries.

The proposed action, known as “fish up,” was requested by industry stakeholders for Council reconsideration during a 2009 request for IFQ proposals. It was unanimously recommended by the IFQ Implementation Team in September 2009. The Council requested this analysis in February 2010. The Council first reviewed the draft analysis in December 2010. The Council selected its preferred alternative in April 2012.

A. JUSTIFICATION

1. Explain the circumstances that make the collection of information necessary.

With this action NMFS would add a new CQE Program in IPHC halibut regulatory area 4B and sablefish Aleutian Islands regulatory area similar to the existing CQE Program in the GOA. NMFS would implement the new CQE Program in the Aleutian Islands to allow a CQE to purchase and hold catcher vessel QS on behalf of any rural community located adjacent to the coast of the Aleutian Islands (defined in regulations at § 679.2 as the Aleutian Islands Subarea of the BSAI).

Since the military station closed on Adak in 1994, the Aleut Corporation and Adak Community Development Corporation (ACDC) have invested significant effort into developing Adak as a commercial center and a civilian community with a private sector economy focused on commercial fishing. As part of that strategy, Adak has pursued a broad range of fisheries development opportunities to encourage a resident fishing fleet and delivery to the shoreside processor located in Adak. A CQE could add stability to shoreside processing operations which have been subject to periodic closure.

2. Explain how, by whom, how frequently, and for what purpose the information will be used. If the information collected will be disseminated to the public or used to support information that will be disseminated to the public, then explain how the collection complies with all applicable Information Quality Guidelines.

The CQE Program allocates a portion of the quotas for groundfish, halibut, crab, and prohibited species in the BSAI. Forty-two eligible Western Alaska communities are eligible in the IFQ Program: 21 are in Southeast Alaska (Area 2C) and 21 are in Southcentral Alaska (14 in Area 3A and 7 in Area 3B); an additional three communities are eligible, making a total of 45. The allocations provide communities the means for starting or supporting commercial fisheries business activities that will result in an ongoing, regionally based, fisheries-related economy. A non-profit corporate entity that meets specific criteria to receive transferred halibut or sablefish QS on behalf of an eligible community may lease the resulting IFQ to persons who are residents of the eligible community.

The community of Adak, Alaska, would need to meet all the following criteria to participate in the proposed Aleutian Islands CQE Program. These specific criteria for community eligibility, with the exception of the first two criteria, would be identical to those implemented for the GOA CQE Program.

♦ Be located within the Aleutian Islands;

♦ Not be eligible for the Western Alaska Community Development Quota (CDQ)¹ Program;

♦ Have a population of more than 20 and less than 1,500 persons based on the 2000 U.S. Census;

♦ Have direct access to saltwater;

♦ Lack direct road access to communities with a population greater than 1,500 persons;

♦ Have historic participation in the halibut and sablefish fisheries; and

♦ Be specifically designated on a list adopted by the Council and included in regulation (see Table 21 to part 679).

Consistent with the definition of a CQE at § 679.2, an Aleutian Islands CQE must meet the three existing requirements:

♦ The CQE must be incorporated after April 10, 2002, the date the Council took final action on the GOA CQE Program.

♦ The community represented by the CQE must be listed in Table 21 to part 679.

♦ The CQE must be approved by NMFS to obtain QS by transfer, hold QS, and lease IFQ resulting from the QS on behalf of an eligible community (see § 679.41(l) for the CQE application process).

By adding Adak, the total number of eligible communities is 46. Table 21 to part 679, lists Eligible communities, Halibut IFQ Regulatory Area Location, Community Governing Body that Recommends the CQE, and the Fishing Programs and Associated Areas where a CQE Representing an Eligible Community may be Permitted to Participate. This table would be revised to add the new community, Adak.

Table 21 to Part 679 – Eligible communities, Halibut IFQ Regulatory Area Location, Community Governing Body that Recommends the CQE, and the Fishing Programs and Associated Areas where a CQE Representing an Eligible Community may be Permitted to Participate.

Eligible GOA or AI community	Halibut IFQ regulatory area in which the community is located	Community governing body that recommends the CQE	May hold halibut QS only in halibut IFQ regulatory				May hold sablefish QS in sablefish IFQ regulatory areas		Maximum number of CHPs that may be held in halibut IFQ regulatory		Maximum number of Pacific cod endorsed non-trawl groundfish licenses that may be assigned in the GOA groundfish regulatory area
			Area 2C	Area 3A	Area 3B	Area 4B	CG, SE, WG, and WY (All GOA)	AI	Area 2C	Area 3A	Central GOA	Western GOA
Adak	4B	City of Adak				X		X
Akhiok	3A	City of Akhiok.		X	X		X			7	2
Angoon	2C	City of Angoon.	X	X			X		4
Chenega Bay	3A	Chenega IRA Village.		X	X		X			7	2
Chignik	3B	City of Chignik.		X	X		X				3
Chignik Lagoon	3B	Chignik Lagoon Village Council.		X	X		X				4
Chignik Lake	3B	Chignik Lake Traditional Council.		X	X		X				2
Coffman Cove	2C	City of Coffman Cove.	X	X			X		4
Cold Bay	3B	City of Cold Bay.		X	X		X					2
Craig	2C	City of Craig.	X	X			X
Edna Bay	2C	Edna Bay Community Association.	X	X			X		4
Elfin Cove	2C	Community of Elfin Cove.	X	X			X
Game Creek	2C	N/A.	X	X			X		4
Gustavus	2C	Gustavus Community Association.	X	X			X
Halibut Cove	3A	N/A.		X	X		X			7	2
Hollis	2C	Hollis Community Council.	X	X			X		4
Hoonah	2C	City of Hoonah.	X	X			X		4
Hydaburg	2C	City of Hydaburg.	X	X			X		4
Ivanof Bay	3B	Ivanof Bay Village Council.		X	X		X					2
Kake	2C	City of Kake.	X	X			X		4
Karluk	3A	Native Village of Karluk.		X	X		X			7	2
Kasaan	2C	City of Kasaan.	X	X			X		4
King Cove	3B	City of King Cove.		X	X		X					9
Klawock	2C	City of Klawock.	X	X			X		4
Larsen Bay	3A	City of Larsen Bay.		X	X		X			7	2
Metlakatla	2C	Metlakatla Indian Village.	X	X			X		4
Meyers Chuck	2C	N/A	X	X			X		4
Nanwalek	3A	Nanwalek IRA Council.		X	X		X			7	2
Naukati Bay	2C	Naukati Bay, Inc.	X	X			X		4
Old Harbor	3A	City of Old Harbor.		X	X		X			7	5
Ouzinkie	3A	City of Ouzinkie.		X	X		X			7	9
Pelican	2C	City of Pelican.	X	X			X		4
Perryville	3B	Native Village of Perryville.		X	X		X					2
Point Baker	2C	Point Baker Community.	X	X			X		4
Port Alexander	2C	City of Port Alexander.	X	X			X		4
Port Graham	3A	Port Graham Village Council.		X	X		X			7	2
Port Lions	3A	City of Port Lions.		X	X		X			7	6
Port Protection	2C	Port Protection Community Association.	X	X			X		4
Sand Point	3B	City of Sand Point.		X	X		X					14
Seldovia	3A	City of Seldovia.		X	X		X			7	8
Tatitlek	3A	Native Village of Tatitlek.		X	X		X			7	2
Tenakee Springs	2C	City of Tenakee Springs.	X	X			X		4
Thorne Bay	2C	City of Thorne Bay.	X	X			X		4
Tyonek	3A	Native Village of Tyonek.		X	X		X			7	2
Whale Pass	2C	Whale Pass Community Association.	X	X			X		4
Yakutat	3A	City of Yakutat.		X	X		X			7	3

N/A means there is not a governing body recognized in the community at this time. CHPs are Charter halibut permits.

a. Application for a Non-profit Corporation to be Designated as a Community Quota

Entity (CQE) [REVISED]

Consistent with regulations applicable to GOA CQEs at § 679.41(l)(3), the Aleutian Islands CQE would complete the same application as that currently required for GOA CQEs. However, because this action would allow an Aleutian Islands CQE to lease IFQ to eligible community residents and non-residents for the first 5 years after the effective date of the final rule, NMFS would modify the application to clarify the mechanisms for considering and distributing IFQ among eligible community residents and non-residents of Adak, discussed below. In addition to the application and other required documentation, the potential Aleutian Islands CQE must

♦ provide procedures to determine the distribution of IFQ to eligible community residents and non-residents of Adak,

♦ provide procedures to solicit requests from eligible community residents and non-residents to lease IFQ; and

♦ provide criteria to determine the distribution of IFQ leases among eligible community residents and non-residents and the relative weighting of those criteria.

Eligibility documentation as a CQE would demonstrate proof of support from the community that the non-profit organization is seeking to represent. NMFS would use this information both to evaluate the ability of the non-profit applicant to represent an eligible GOA or Aleutian Islands community and to ensure the non-profit has the support of the community’s government body.

When completed, the application may be submitted to NMFS

By mail to: NMFS Alaska Region

Restricted Access Management (RAM)

P.O. Box 21668

Juneau, Alaska 99802-1668

Or, deliver to: 709 West 9th Street, Room 713

Juneau, AK 99801

Fax submittal is not acceptable due to the Notary requirements. All signatures must be witnessed by a Notary Public (or, in some remote areas, the community Postmaster or Postmistress).

Application for a Non-profit Corporation to be Designated as a CQE

Block A - Identification of Applicant

Name of the non-profit organization

Name of the contact person

Permanent business mailing address, including street or P.O. Box, city, state, and zip code

Business telephone number, business fax number, and business e-mail address

Name of community represented by the non-profit

Name of the contact person for Community Governing Body

Block B - Required Attachments – Checklist of attachments

Block C - Notary Certification

Printed name and signature of applicant, and date signed.

If completed by representative, attach authorization

Signature of notary public, date when commission expires, and Notary stamp or seal

Each non-profit entity must apply to become a CQE representing a specific community. Each of the eligible communities must designate a CQE to represent it. One CQE can represent more than one community, although a community can only have one CQE. There are potentially a total of 46 IFQ and QS halibut and sablefish eligible communities (including Adak), of which are also CQE eligible communities, 32 charter halibut eligible communities, and 24 License Limitation Program (LLP) communities.

The previous analysis presented the addition of seven respondents and responses, 1,400 hours burden, $210,000 personnel costs, and $56 miscellaneous. The current analysis shows one additional respondent, 200 hr burden, $30,000 personnel costs, and $8 miscellaneous cost. The differences are due to one new CQE applying versus seven new CQEs in the previous analysis. This application is required only once (unless a particular eligible community withdraws support from a specific CQE). The existing CQEs do not need to reapply. A current list of CQEs and the communities represented is presented at http://alaskafisheries.noaa.gov/ram/daily/cqenamescontacts-en-us.pdf

Application to become a CQE, Respondent
Estimated number of respondents Total annual responses Response per respondent = 1 initial Total burden hours Time per response = 200 hr Total personnel cost = $150/hr x 200 Total miscellaneous costs (7.95) Photocopy ( 50 pp x .05 x 1 = 2.50) Postage (0.45 x 1 = 0.45) Notary ($5 x 1 = 5)	1 1 200 hr $30,000 $8

Application to become a CQE, Federal Government
Total annual responses Total burden hours Time /response = 4 hr Total personnel cost ($37/hr x 4) Total miscellaneous cost	1 4 hr $148 0

b. Application for Transfer of QS/IFQ to or from a Community Quota Entity (CQE) [REVISED]

NMFS has separated the existing Application for Transfer of QS/IFQ to or From a Community Quota Entity (CQE) into two application forms: one for transfer of QS to and from a CQE and the other for a CQE to transfer IFQ to or from an eligible community resident or non-resident.

This revised application is used by a CQE applying to permanently receive or permanently transfer QS (with or without IFQ). As stated above, the party seeking to receive the transfer of QS/IFQ must also use this application to obtain a Transfer Eligibility Certificate (TEC). A person receives a TEC if the Application for Transfer of QS/IFQ to or from a Community Quota Entity (CQE) is submitted to and approved by NMFS.

If the CQE is applying to permanently transfer QS/IFQ, a representative of the community on whose behalf the QS is held must sign the application.

Consistent with the current QS transfer approval process for CQEs, NMFS would approve the transfer of QS held by an Aleutian Islands CQE only if the community for which the CQE holds the QS authorizes that transfer. This authorization would need to be in the form of a signature by an authorized representative of the governing body of the community on this application. The purpose of the authorization is to ensure that the community is fully aware of the transfer.

When completed, the original application may be submitted:

By mail to: Alaska Region, National Marine Fisheries Service

Restricted Access Management (RAM)

P.O. Box 21668

Juneau, AK 99802-1668

Or, deliver to: Room 713, Federal Building

709 West 9th Street

Juneau, AK

Application for Transfer of QS/IFQ to or from a CQE

(Use QS Holder Summary Report or TEC for official information)

Block A – Transferor (Seller) Information

Name of transferor

NMFS Person ID

Name of the community represented by the CQE

Permanent business mailing address

If appropriate, enter the temporary business mailing address

Business telephone number, business fax number, and e-mail address (if available)

Block B – Transferee (Buyer) Information

Name of transferee

NMFS Person ID

Name of the community represented by the CQE

Permanent business mailing address, including P.O. Box, street, city, state, and zip code

If appropriate, temporary business mailing address

Business telephone number, business fax number, and e-mail address (if available)

Block C – Questions for Transferee

Indicate if applicant intends this QS to be included in a sweep up

If YES, list the identifier into which this new piece should be combined

Attach the original QS Holder Summary Reports of both the transferor and the transferee

If this is a transfer of Catcher Vessel CDQ compensation QS and the vessel category has not been declared, indicate the category requested

Block D – Identification of QS to be Transferred

Quota share to be transferred

Total QS units

Designation of QS units

Block E – Required Transferor Supplemental Information

Indicate the reason(s) transfer is being proposed. Check all that apply and explain

Price per unit of QS

Total amount paid for the QS/IFQ in this transaction, including all fees

Indicate whether a broker is used for this transaction

If YES, indicate amount paid in brokerage fees or percentage of total price.

Indicate reason(s) for transferring QS/IFQ (check all that apply)

Block F – Required Transferee Supplemental Information

Indicate whether the QS/IFQ will have a lien attached

If YES, identify the person who will hold the lien

Primary source of financing for this transfer (check one)

Indicate how the QS/IFQ was located (check all that apply)

Relationship to the transferor (check all that apply)

Indicate whether an agreement exists to return the QS to the transferor or a condition placed on resale

If YES, explain

Block G -- Certification of Transferor

Printed name and signature of Transferor and date signed

If completed by representative, attach authorization

Signature, commission expiration date, and stamp of notary public

Block H -- Certification of Transferee

Printed name and signature of Transferee and date signed

If completed by representative, attach authorization

Signature, commission expiration date, and stamp of notary public

Block I -- Certification of CQE Community Representative

Signature of Community Representative and date signed

Printed name and title of Community Representative

Signature, commission expiration date, and stamp of notary public

There currently are 31 CQEs (see http://alaskafisheries.noaa.gov/ram/daily/cqenamescontacts.pdf); this action adds one CQE for the Aleutian Islands which totals 32 CQEs.

Application for Transfer of QS/IFQ to or from a CQE, Respondent
Estimated number of respondents Total annual responses Response per respondent = 2 Total burden hours Time per response = 2 hr Total personnel cost ($37/hr x 128) Total miscellaneous costs (383.80) Photocopy ( 4 pp x .05 x 64 = 12.80) Postage (0.45 x 60 = 27) Courier ($6 x 4 = 24) Notary ($5 x 64 = 320)	32 64 128 hr $4,736 $384

Application for Transfer of QS/IFQ to or from a CQE, Federal Government
Total annual responses Total Time burden Time per response = 30 minutes Total personnel cost ($37/hr x 32) Total miscellaneous cost	64 32 hr $1,184 0

c. Application for a CQE to transfer IFQ to an eligible community resident or non-resident [NEW]

Once NMFS approves the transfer of QS to CQE, the CQE may transfer halibut and sablefish IFQ to individual, eligible community residents and non-residents. The CQE Program also promotes QS ownership by individual community residents. Individuals who lease annual IFQ from the CQE could use IFQ revenue to purchase their own QS.

An Aleutian Islands CQE could lease any IFQ derived from their QS to either eligible community residents of Adak or non-residents for a period of up to 5 years after the effective date of the final rule. After the 5 year period, the CQE would be required to lease the annual IFQ derived from QS it holds only to eligible community residents of Adak.

Those persons applying to receive QS or IFQ by transfer must submit an Application for Eligibility to Receive QS/IFQ containing accurate information to the Regional Administrator, to obtain a TEC. To be eligible, persons must have 150 or more days of experience working as part of a harvesting crew in any U.S. commercial fishery. Work in support of harvesting but not directly related to it is not considered harvesting crew work.

An eligible community resident receiving IFQ from an Aleutian Islands CQE would have to hold a TEC, but NMFS would not apply the 150-day criteria for the eligible community resident to receive the TEC.

Due to the notary requirement, when completed, the original application may only be submitted:

By mail to: Alaska Region, National Marine Fisheries Service

Restricted Access Management (RAM)

P.O. Box 21668

Juneau, AK 99802-1668

Or, deliver to: Room 713, Federal Building

709 West 9th Street

Juneau, AK

Application for a CQE to Transfer IFQ to an eligible community resident or non-resident

Block A – Transferor (Seller) Information

Name of transferor as it appears on the QS Holder Summary Report or TEC

NMFS Person ID

Name of the community represented by the CQE

Business mailing address. Indicate whether permanent or temporary address

If permanent address, include street or P.O. Box, city, state, and zip code

If temporary, include street or P.O. Box, city, state, and zip code

Business telephone number, business fax number, and e-mail address (if available).

Block B – Transferee (Buyer) Information

Name of transferee

NMFS Person ID (as set out on the QS Holder Summary Report or the TEC)

Business mailing address. Indicate whether permanent or temporary address.

If permanent address, include street or P.O. Box, city, state, and zip code.

If temporary, include street or P.O. Box, city, state, and zip code. This address will be used to send the transfer documentation, if different from the permanent address.

Business telephone number, business fax number, and e-mail address (if available).

Block C -- Transfer (Lease) of IFQ

Note: in the case of the city of Adak, the transferee does not need to be a community resident for the first five years of the program.

Identify IFQ to be transferred by entering the IFQ Permit Number(s) and Year

Name of the community to which IFQ are currently assigned

Indicate if a resident of the Aleutian Islands

If NO, enter city and state of residence

Note: Transferee must be a resident of the community represented by the CQE unless that community

is Adak

Name of city and state

Block D – Required Transferor Supplemental Information

Price per pound of IFQ

Indicate whether a broker is used for this transaction.

If YES, indicate amount paid in brokerage fees or percentage of total price.

Block E – Certification of Transferor

Printed name and signature of Transferor and date signed

If completed by representative, attach authorization

Signature, commission expiration date, and stamp of notary public

Block F -- Certification of Resident Transferee

Printed name and signature of resident transferee and date signed

If completed by representative, attach authorization

Signature, commission expiration date, and stamp of notary public

Block G -- Certification of Non-Resident Transferee

Printed name and signature of Transferee and date signed

If completed by representative, attach authorization

Signature, commission expiration date, and stamp of notary public

It is estimated that the Aleutian Islands CQE will request 10 IFQ leases to eligible community residents or non-residents per year.

Appln for CQE Transfer IFQ to cmty resident Respondent
Estimated number of respondents Total annual responses Response per respondent = 1 Total burden hours Time per response = 2 hr Total personnel cost = $37/hr Total miscellaneous costs (5.50) Photocopy ( 2 pp x .05 x 10 = 1) Postage (0.45 x 10 = 4.50) Notary (5.00 x 10) = 50	10 10 20 hr $740 $56

Appln for CQE Transfer IFQ to cmty resident, Federal Government
Total annual responses Total burden hours (30 minutes) Total personnel cost = $37/hr Total miscellaneous cost	10 5 hr $185 0

d. Application for Community Charter Halibut Permit (Community CHP)

The Charter Halibut Limited Access Program established new Federal Charter Halibut Permits (CHPs) for operators in the charter halibut fishery in Regulatory Areas 2C (Southeast Alaska) and 3A (South Central Alaska). The Program also provides a limited number of permits issuable on request to nonprofit corporations representing specified rural communities.

All vessel operators in IPHC Areas 2C and 3A with charter anglers onboard must have an original, valid permit onboard during every charter vessel fishing trip on which Pacific halibut are caught and retained. CHPs are endorsed for the appropriate regulatory area and the number of anglers that may catch and retain charter halibut on a trip. There is no deadline for application.

An eligible community must form a CQE to represent it prior to applying for a Community CHP. This CQE must be approved by NMFS. A CQE that represents an eligible community may receive one or more Community CHPs. The CQE must use a separate application for each community that it represents.

Only the following communities are eligible to obtain Community CHPs in the area designated for the community (see also Table 21 to part 679).

Eligible Communities for 2C Community Charter Halibut Permits	Eligible Communities for 3A Community Charter Halibut Permits
Angoon	Akhiok
Coffman Cove	Chenega
Edna bay	Halibut Cove
Hollis	Karluk
Hoonah	Larsen Bay
Hydaburg	Nanwalek
Kake	Old Harbor
Kassan	Ouzinkie
Klawock	Port Graham
Metlakatla	Port Lions
Meyers Chuck	Seldovia
Pelican	Tatitlek
Point Baker	Tyonek
Port Alexander	Yakutat
Port Protection
Tenakee
Thorne Bay
Whale Pass

When completed, the application may be submitted to NMFS by mail, fax, or delivery.

Application for Community Charter Halibut Permit (CCHP)

Block A—Type of Permit(S)

Indicate the type of permit(s) for which applying

If a CQE applying for Community CHP, enter the name of the community

Block B –Applicant Information

Applicant’s name

Permanent business mailing address, including P.O. Box or street, city, state, zip code

Business telephone number, business fax number, and business e-mail address

Block C – Community CHP Request

Name(s) of the community that the CQE represents

List the number of CHPs requested for this community

List location boundaries of community, including latitude and longitude, where all trips will begin or end

Block D – CQE Applicant Signature

Print name and title, signature and date signed

May be required to provide documentation demonstrate authorization

Application for Community CHP, Respondent
Estimated number of respondents Total annual responses Response per respondent = 1 Total burden hours Time per response = 1 hr Total personnel cost = $25/hr Total miscellaneous costs (20.80) Photocopy (4pp x .05 x 32 = 6.40) Postage (0.45 x 32 = 14.40)	32 32 32 hr $800 $21

Application for Community Charter, Federal Government
Total annual responses Total burden hours (30 minutes) Total personnel cost = $25/hr Total miscellaneous cost	32 16 hr $400 0

e. Application for a CQE to Receive a Non-trawl Groundfish LLP License [NO CHANGES]

Each CQE that is approved by the Regional Administrator to represent a community may apply to receive a groundfish LLP license on behalf of any of the communities listed in Table 21 to part 679. A CQE may not apply for more than the maximum amount of groundfish licenses designated in the regulatory area specified for a community listed. This application need be submitted and approved only once.

A groundfish LLP license approved for issuance to a CQE by the Regional Administrator for an eligible community will have only a catcher vessel designation, a non-trawl gear endorsement, and will be assigned a Pacific cod endorsement with a non-trawl gear designation. The CQE applying to receive a non-trawl groundfish LLP license must provide all of the required documentation. The CQEs, representing specific communities in the Central GOA and Western GOA, would need to submit in addition to an application to receive a fixed-gear LLP license endorsed for Pacific cod:

♦ The selection of fixed gear type by CQEs in the Central GOA.

♦ A description of the methods used to assign any fixed gear LLP licenses received.

♦ A letter of authorization for persons using LLP licenses assigned to a CQE.

♦ An annual report detailing the distribution and use of LLP licenses.

To receive a groundfish LLP license a CQE must submit an original, completed application for a groundfish license by mail or courier to the Regional Administrator, NMFS, P.O. Box 21668, Juneau, AK 99802.

Application for a CQE to Receive a Non-trawl Groundfish LLP License

Block A - Identification of applicant

Name of Non-Profit (CQE) Organization

Name of CQE Contact Person

CQE NMFS Person ID

Name of Community on whose behalf the CQE is applying for an LLP(s)

Permanent Business Mailing Address

Business Telephone Number

Business Fax Number

Business E-mail Address

Block B – GOA Non-trawl LLP licenses & non-trawl gear designations

Total number of LLP groundfish licenses being requested

Non-trawl gear type to be designated on each groundfish license requested

License

Gear type

Block C – Attachments

A statement describing:

Procedures the CQE used to determine the distribution of LLP licenses to residents of the community

Procedures the CQE used to solicit requests from residents to be assigned an LLP license

Criteria the CQE used to determine the distribution of the use of LLP licenses among qualified community

residents and the relative weighting of those criteria.

Block D - CQE certification
Signature and printed name of applicant or Authorized Representative and date signed

If representative, attach authorization.

Application for CQE to receive non-trawl groundfish LLP, Respondent
Estimated number of respondents Total annual responses = 1 Frequency of response = initial application Total burden hours Time per response = 20 hr Total personnel cost = $25/hr Total miscellaneous costs (7.60) Photocopy ( 10 pp x .05 x 8 = 4) Postage (0.45 x 8 = 3.60)	8 8 160 hr $4,000 $8

Halibut CDQ and PSQ transfer request

Application for CQE to receive non-trawl groundfish LLP, Federal Government
Total annual responses Total burden hours Time per response = 4 hr Total personnel cost ($25/hr x 32) Total miscellaneous cost	8 32 hr $800 0

f. Community Entity Quota (CQE) Program Annual Report [REVISED]

Consistent with current annual reporting requirements applicable to GOA CQEs, the Aleutian Islands CQE would need to submit an annual report by January 31 to NMFS and to the governing body for the community represented by the CQE (i.e., City of Adak), detailing the use of QS and IFQ by the CQE and fishery participants during the previous year’s fishing season.

The Aleutian Islands CQE must provide a description of the process used to solicit applications from eligible community residents and non-residents; the total number of eligible community residents and non-residents who applied to use IFQ; a detailed description of the criteria used by the CQE to distribute IFQ among eligible community residents and non-residents who applied to use IFQ; and any payments made to the CQE for use of the IFQ by eligible community residents and non-residents.

Consistent with regulations applicable to the GOA CQE Program, an individual who receives IFQ derived from QS held by a CQE may not designate a hired master to fish the community IFQ: the individual must be on board the vessel when the IFQ is being fished. This provision is intended to ensure that the potential benefits of QS held by communities would be realized by the IFQ lease holder.

Individuals who hold leases of IFQ from communities would be considered IFQ permit holders and would be subject to the regulations that govern other permit holders, including the payment of annual IFQ cost recovery fees as required under § 679.45.

The Aleutian Islands CQE could lease any IFQ derived from their QS to either eligible community residents of Adak or non-residents for a period of up to 5 years after the effective date of the final rule. After the 5 year period, the CQE would be required to lease the annual IFQ derived from QS it holds only to eligible community residents of Adak.

The Aleutian Islands CQE annual report would gather information on the use of IFQ by persons who are not residents of Adak during the first 5 years after the effective date of the final rule. These provisions would not affect GOA CQEs because existing regulations at § 679.42(e)(8) and (f)(7) prohibit persons other than eligible community residents from fishing the IFQ held by GOA CQEs; therefore, no additional reporting of information on non-residents would be required from GOA CQEs.

If an Aleutian Islands CQE fails to submit a timely and complete annual report, or if other information indicates that the CQE is not adhering to the procedures for distributing or managing QS and IFQ on behalf of a community as established under its application, then NMFS would initiate an administrative action to suspend the ability of the CQE to transfer QS and IFQ, and to receive additional QS by transfer. This action would be implemented consistent with the administrative review procedures provided at § 679.43.

To ensure that the CQE acts in the best interest of the community and fulfills all the requirements established in its application for eligibility and the regulations for this program, an eligible community is encouraged to provide a CQE monitoring mechanism.

The CQE may combine annual reports about its holdings of community CHP permits, IFQ, and LLPs in one report. A CQE must submit annual report data for the community CHP permit, IFQ, and LLP permits it held during the calendar year. A CQE is not required to submit an annual report for any calendar year in which it did not hold any community charter halibut permits, IFQ, or LLPs.

By January 31, the CQE must submit a complete annual report for the prior calendar year to the Regional Administrator, National Marine Fisheries Service, P.O. Box 21668, Juneau, AK 99802, and to the governing body of each community represented by the CQE as identified in Table 21 to part 679.

A complete annual report must contain all general report requirements and all program specific report requirements applicable to the CQE, as follows:

Community Entity Quota (CQE) Program Annual Report

General report requirements

Each CQE must report the following

Eligible community or communities represented by the CQE

Any new communities

Any withdrawn communities

Any changes in the bylaws of the CQE, board of directors, or other key management personnel

Attach copies of minutes and other relevant decision making documents from all CQE board meetings held during the prior calendar year

Charter Halibut Permit (CHP) Limited Access Program

For each community represented by the CQE, the program specific report for charter halibut permits held by a CQE

Total number of CHPs held by the CQE

at the start of the calendar year

at the end of the calendar year

projected to be held in the next calendar year

Process used by the CQE to solicit applications from persons to use CHPs

Total number of persons who applied to use one or more CHPs

Name, business address, city and state, and number of CHPs requested by each person who applied

Criteria used by the CQE to distribute CHPs among persons who applied to use one or more CHPs

For each person issued one or more CHPs, provide

Name

Business address, city and state

ADF&G logbook number(s)

Number(s) of CHPs authorized to use

with the corresponding regulatory area endorsement

and angler endorsement

For each vessel authorized to participate in the charter halibut fishery using one or more CHPs, provide

Vessel name

ADF&G vessel registration number

USCG documentation number

Length overall

Home port

CHP number held by the CQE and used onboard the vessel

Set of ports from which the vessel departed and to which it returned

Total number of trips that occurred to and from each set of ports

For each community represented by the CQE, provide

any payments made to the CQE for use of the CHPs.

Individual Fishing Quota Program

For each community represented by the CQE, the program specific report for halibut IFQ or sablefish IFQ:

Total amount of halibut QS and total amount of sablefish QS held by the CQE

at the start of the calendar year

at the end of the calendar year

projected to be held in the next calendar year

Process used by the CQE to solicit applications from eligible community residents and non-residents to use IFQ that is derived from QS that the CQE is holding on behalf of the community

Total number of eligible community residents and non-residents who applied to use IFQ held by the CQE

Name, business address, city and state, and amount of IFQ requested by each person who applied to use IFQ

Criteria used by the CQE to distribute IFQ among eligible community residents and non-residents who applied to use IFQ

For each person who leased IFQ derived from QS held by the CQE

Name

Business address, city and state

IFQ permit number

Total pounds of halibut IFQ authorized by each IFQ permit number

Total pounds of sablefish IFQ authorized by each IFQ permit number;

For each vessel used to harvest IFQ held by the CQE, provide

Vessel name

ADF&G vessel registration number

USCG documentation number

Length overall

Home port

IFQ permit number(s) used onboard

CQE efforts to ensure crew members onboard to harvest the IFQ are residents of the eligible community

For each person employed as a crew member

Name

Resident city and state

Business address

For each community whose eligible community residents and non-residents landed IFQ, describe payments made to the CQE for use of the IFQ

License Limitation Program

For each community represented by the CQE, the program specific report for GOA Pacific cod endorsed non-trawl groundfish licenses held by a CQE

Total number of LLP groundfish licenses by gear type endorsement held by the CQE

at the start of the calendar year

at the end of the calendar year

projected to be held in the next calendar year

CQE process used to solicit applications from residents of the eligible community to use LLP groundfish

license(s) held by the CQE

Total number of community residents who applied to use an LLP groundfish license

For each person who applied to use a LLP groundfish license

Name

Business address, city and state

Number of LLP groundfish licenses requested

CQE criteria to distribute LLP groundfish licenses among eligible community residents who applied to use LLP

For each person assigned one or more LLP groundfish licenses held by the CQE

Name

Business address, city and state

LLP groundfish license numbers of each gear endorsement type they were authorized to use

For each vessel authorized to harvest LLP groundfish using LLP groundfish licenses held by the CQE

Vessel name

ADF&G vessel registration number

USCG documentation number

Length overall

Home port

LLP groundfish license number used onboard

CQE efforts to ensure crew members onboard the vessels are residents of the eligible community

For each person employed as a crew member on each vessel using LLP groundfish licenses held by the CQE Name

Resident city and state

Business address, city and state

For each community whose residents made landings using LLP groundfish licenses held by the CQE list payments made to the CQE for use of the LLP groundfish licenses

Aleutian Islands CQE Program

For each Aleutian Islands community represented by the CQE, the program specific report

Description of the process used to solicit applications from eligible community residents and non-residents

Total number of eligible community residents and non-residents who applied to use IFQ

Criteria used by the CQE to distribute IFQ among eligible community residents and non-residents who applied

to use IFQ

Any payments made to the CQE for use of the IFQ by eligible community residents and non-residents.

CQE Annual Report, Respondent
Estimated number of respondents Total annual responses Response per respondent = 1 Total burden hours Time per response = 40 hr Total personnel cost = $37/hr Total miscellaneous costs (102.30) Photocopy (10 pp x .05 x 32 x 3cc = 48) 1 cc to NMFS 1 cc to community 1 cc to CQE Postage (0.90 x 27= 24.30) Courier ($6 x 5 = 30)	32 32 1,280 hr $47,360 $102

Halibut CDQ and PSQ transfer request

CQE Annual Report, Federal Government
Total annual responses Total burden hours = 4 hr Total personnel cost ($37/hr x 128) Total miscellaneous cost	32 128 hr $4,736 0

g. Annual CQE LLP Letter of Authorization [NO CHANGES]

The LLP is issued to the CQE, and the CQE designates the vessel to which the LLP license is assigned. Prior to requesting an LLP, the CQE shall provide NMFS with a detailed plan for soliciting and determining recipients of the CQE permit.

Upon receipt of the LLPs from NMFS, the CQE shall determine who may use the LLP license and provide them with a letter of authorization. The LLP license issued cannot designate more than one vessel per LLP per calendar year. The CQE must provide an authorization letter assigning each community LLP to a specific vessel and designating the vessel operator.

The authorization letter must be sent to the authorized vessel, and the copy of that letter must be maintained onboard the vessel. This would help to ensure that only those persons and vessels that have been vetted through the CQE would be able to use the LLP license. The person specified for an LLP groundfish license in an annual CQE authorization letter must be on board the vessel during directed fishing. The CQE must send a copy of each letter to NMFS, and must maintain a copy.

As part of the authorization letter, NMFS requires that the CQE attest that the authorized representative using a groundfish license issued to a CQE:

♦ Is a citizen of the United States;

♦ Has maintained a domicile in a CQE community in the Central GOA or Western GOA eligible to receive an LLP license endorsed for Pacific cod for the 12 consecutive months immediately preceding the time when the assertion of residence is made; and

♦ Is not claiming residency in another community, state, territory, or country, except that residents of the Village of Seldovia shall be considered to be eligible community residents of the City of Seldovia for the purposes of eligibility to serve as an authorized vessel operator.

The residency requirements for a vessel operator using a CQE license ensures that residents of a specific community actively participate in the Pacific cod fishery consistent with the overall goal the Council established for CQE LLP licenses.

The authorization letter would require that the CQE attest to individuals’ residency, but would not require individuals to submit proof of residency to NMFS in order to use the LLP license issued to the CQE. This approach would reduce potential administrative burdens on NMFS that could be required to determine the residency of a specific person. In many cases, particularly in smaller communities, the representatives of CQEs are likely to have specific local knowledge that can be used to assess a person’s claim of residency in a particular community.

If an amendment is made to the annual CQE authorization letter, copies of the revised CQE authorization letter must be sent to the designated vessels. There are potentially a total of 46 IFQ and QS halibut and sablefish eligible communities (including Adak), some of which are also CQE eligible communities, 32 charter halibut eligible communities, and 24 License Limitation Program (LLP) communities.

CQE LLP Letter of authorization, Respondent
Total respondents Total responses = 1 Frequency of response = 1 Total burden hours Time per response = 1 hr Total personnel cost ($25/hr x 24) Total miscellaneous costs (12) Postage (0.45 x 24 = 10.80) Photocopy (0.05 x 1pp x 24 = 1.20)	24 24 24 hr $600 $12

CQE LLP Letter of authorization, Federal Government
Total responses Total burden hours = 1 hr Total personnel costs ($25/hr x 24) Total miscellaneous costs	24 24 $600 0

g. Application for Transfer Between IFQ and Guided Angler Fish (GAF) by a Community Quota Entity (CQE) [NO CHANGES]

This application will be implemented by the halibut catch sharing final rule. The application is used to transfer annual IPHC Area 2C or 3A commercial IFQ held by a CQE for use as GAF by a community resident holding one or more CHPs for areas 2C or 3A. In addition, this application may be used to return unused GAF to the CQE from which it was obtained. The new Aleutian Islands CQE is implemented by a different final rule so this transfer does not apply to it.

CQEs that hold quota share are allowed to transfer IFQ as GAF. The limits on these transfers depend on whether the GAF permit holder is a CQE, an eligible community resident, or a non-resident.

♦ A CQE applying for a transfer between IFQ and GAF must be eligible to hold IFQ on behalf of an eligible community in Area 2C or Area 3A and have received NMFS’ notification of approval of eligibility to receive IFQ for that community. In addition,

♦ An individual applying to receive GAF from Area 2C or Area 3A IFQ held by a CQE must be an eligible community resident of the eligible community in whose name the CQE is holding IFQ.

♦ The CQE applying to receive GAF must hold one or more valid community CHPs.

♦ The CQE applying to transfer IFQ to GAF must submit a complete annual report(s) as required by 50 CFR part 679.5(l)(8).

NMFS will not transfer IFQ to GAF after November 1 and will return all unharvested GAF to the CQE on or about November 1 each year.

The CQE is responsible for all cost recovery fees (OMB Control No. 0648-0398) resulting from the GAF harvested as a result of this transfer. Unused GAF will be returned to the CQE from which they were obtained; no fees will be assessed for any unused GAF.

Applications may be submitted to NMFS by mail or by delivery.

Application for Transfer Between IFQ and GAF by a CQE

Attachments

Completed Application

Copy of IFQ permit (s)

Valid Charter Halibut Permit

Power of Attorney (if applicable)

Identification of proposed transferor

Name and NMFS Person ID of Transferor

Name of Community represented by the CQE

Permanent Business Mailing Address and Temporary Business Mailing Address

Business Telephone No. and Business Fax No

Business E-mail address (if available)

Identification of proposed transferee

Name and NMFS Person ID of Transferee

Name of Community represented by the CQE

Permanent Business Mailing Address and Temporary Business Mailing Address

Business Telephone No. and Business Fax No

Business E-mail address (if available)

Identification of IFQ and/or GAF To be Transferred

IFQ Permit Number

IPHC Area

Charter Halibut Permit Number

GAF Permit Number (only required when GAF is returning to the IFQ permit holder)

Number of GAF

Notarized certification of proposed transferor

Signature and printed name of transferor and date signed

If a representative, attach authorization

Signature of notary public, date commission expires, and notary stamp or seal

Notarized Certification of proposed transferee

Signature and printed name of transferee and date signed

If a representative, attach authorization

Signature of notary public, date commission expires, and notary stamp or seal

Eighteen Area 2C communities are eligible to each receive up to 4 halibut charter halibut permits at no cost; 14 Area 3A communities are eligible to each receive up to 7 halibut charter halibut permits at no cost. Note that eligibility for community charter halibut permits is conditioned on the fact that the community must be represented by a CQE approved by NMFS. Thus, the number of eligible community entities that would be authorized to engage in GAF transfers is a maximum estimate.

Application for Transfer Between IFQ and GAF by CQE, Respondent
Number of respondents 18 Area 2C 14 Area 3A Total annualized responses Frequency of response = 1 Total burden hours Time per response = 2 hr Total personnel costs ($25 x 64) Total miscellaneous costs (91.60) Mail (1.32 x 30 = 39.60) Fax (6 x 2 = 12) Photocopy (.05 x 25pp x 32 = 40)	32 32 64 hr $1,600 $92

Application for Transfer Between IFQ and GAF by CQE, Federal Government
Number of responses Total burden hours Time per response = 30 min Total personnel costs ($25 x Total miscellaneous costs	32 16 $400 0

It is anticipated that the information collected will be disseminated to the public or used to support publicly disseminated information. NOAA Fisheries will retain control over the information and safeguard it from improper access, modification, and destruction, consistent with NOAA standards for confidentiality, privacy, and electronic information. See response to Question 10 of this Supporting Statement for more information on confidentiality and privacy. The information collection is designed to yield data that meet all applicable information quality guidelines. Prior to dissemination, the information will be subjected to quality control measures and a pre-dissemination review pursuant to Section 515 of Public Law 106-554.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological techniques or other forms of information technology.

Forms and applications are “fillable” on the computer screen at the NMFS Alaska Region Home Page at www.alaskafisheries.noaa.gov. The Application for a CQE to Receive a Non-trawl LLP License and the Application for Transfer of QS-IFQ to a CQE may be submitted to NMFS by mail, courier, or fax. The Application for a Non-profit Corporation to be Designated as a CQE and the Application for Transfer of QS-IFQ to a CQE may be submitted to NMFS by mail or delivery. Fax submittal is not acceptable due to the Notary requirements. The CQE final report is a large report with various sizes of pages which must be submitted by mail or in person. The CQE Authorization Letter may be submitted as an attachment to an email.

4. Describe efforts to identify duplication.

No duplication exists with other information collections.

5. If the collection of information involves small businesses or other small entities, describe the methods used to minimize burden.

All available evidence suggests that by the voluntary nature of the CQE Program and the proposed provisions themselves there is no potential for this action to impose significant adverse economic impacts on a substantial number of small entities.

6. Describe the consequences to the Federal program or policy activities if the collection is not conducted or is conducted less frequently.

Without the specified reporting scheme described in this Support Statement, the CQE Program would be unable to proceed.

The lack of adequate information to manage the CQE Program would result in the fishery management decision-making process being less objective, more political, and potentially less equitable. This would decrease the credibility of the fishery management process and result in an unnecessarily costly and ineffective management system. The cost of making decisions based on inadequate information would adversely affect the viability of the CQE fishing industry.

7. Explain any special circumstances that require the collection to be conducted in a manner inconsistent with OMB guidelines.

No special circumstances exist.

8. Provide information on the PRA Federal Register Notice that solicited public comments on the information collection prior to this submission. Summarize the public comments received in response to that notice and describe the actions taken by the agency in response to those comments. Describe the efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.

The Council considered comments from the public, NMFS, and the State of Alaska, and incorporated the foundation of the GOA CQE program in its recommendation for the Aleutian Islands CQE Program. As noted earlier, the GOA CQE Program was developed to provide harvest opportunities for small, remote, coastal communities that lacked access to fishery resources. The Aleutian Islands CQE Program is intended to meet that same purpose.

NMFS Alaska Region published a proposed rule in the Federal Register on November 14, 2013 (78 FR 68390) coincidentally with this submission requesting comments from the public. The 30-day comment period on the proposed rule ended on December 16, 2013.

NMFS received a total of nine comment letters on Amendment 102 and the proposed rule during the comment periods.

♦ Two letters from a member of the public expressed a general dislike of fishery management policies that are outside the scope of this action.

♦ Three comment letters addressed Amendment 102 and the proposed regulations for the amendment. One letter supported Amendment 102 and the implementation of the final rule. Two comment letters did not support Amendment 102 or implementation of the final rule. The three letters contained six substantive comments.

♦ Four comment letters supported the proposed action to allow vessel category D QS to be fished on class C vessels in Area 4B. The letters contained one substantive comment.

No changes were made to the final rule or OMB support statement in response to the comment letters received. NMFS’ responses to the substantive public comments on Amendment 102 and the proposed rule are presented below.

Comment 1

The commenter supports adoption of the final rule to implement Amendment 102 as soon as possible to allow acquisition of QS, preparation of the CQE application, and timely certification of the CQE for the 2014 IFQ fishery season. The commenter states that the proposed rule correctly captures the intent of the Councils action to create an Aleutian Islands CQE Program.

Response

NMFS acknowledges the comment.

Comment 2

Amendment 102 ignores National Standard 4 of the Magnuson-Stevens Act, which specifies that conservation and management measures shall not discriminate between residents of different states and that any allocation of fishing privileges must be fair and equitable. Instead, the proposed action unfairly and unlawfully relies on National Standard 8 of the Magnuson-Stevens Act, which specifies that conservation and management measures shall take into account the importance of fishery resources to fishing communities and provide for the sustained participation of such communities. Amendment 102 benefits selected Alaskans at the expense of other non-Alaskan residents that participate in the fishery. This is unfair, discriminatory, and contrary to the requirements of National Standard 4.

Response

The Council and NMFS have determined that Amendment 102 is consistent with the requirements of the Magnuson-Stevens Act. As described in section 3.1 of the RIR, Amendment 102 and the final rule are consistent with National Standard 4 because it provides an opportunity for a non-profit entity representing Adak (i.e., the Aleutian Islands CQE) to purchase QS on the open market. If a QS holder is not willing to offer its QS for sale to an Aleutian Islands CQE, no transfer can occur. Amendment 102 does not constrain transfers among willing QS holders and buyers. Amendment 102 does not allocate or assign fishing privileges to the Aleutian Islands CQE and as a result, does not discriminate between residents of different states.

As described in the proposed rule preamble (78 FR 68390, November 14, 2013) and in section 2.1 of the RIR, the final rule promotes the Council’s objective to provide an opportunity for Adak to improve access to the commercial halibut and sablefish fisheries in the Aleutian Islands and to provide stability to shoreside processing operations in Adak through a structure similar to the GOA CQE Program. The Aleut Corporation and the Adak Community Development Corporation have invested significant effort into developing Adak as a commercial center and civilian community with a private sector economy focused heavily on commercial fishing (see section 2.4.5 of the RIR for additional detail). Section 2.6.2.4 of the RIR notes that residents of Adak were not initially issued halibut and sablefish QS during implementation of the IFQ Program, and the costs of purchasing QS have restricted the ability of residents to participate in the halibut and sablefish IFQ fisheries. Individuals in small, remote communities such as Adak, may realize a higher cost of participation than larger communities with road access to markets (see section 2.6.2.4 of the RIR). The Council and NMFS intend for Amendment 102 and the final rule to provide fishing opportunities for residents of Adak, as well as to minimize the adverse economic impacts of the costs of entering the current IFQ program.

The Council and NMFS have determined that Amendment 102 and the final rule meet the objectives of National Standard 8 by facilitating long-term access to and participation in the commercial halibut and sablefish fisheries by residents of a small, remote, coastal community in the Aleutian Islands. The mechanism implemented by the final rule to help facilitate participation is to allow the Aleutian Islands CQE to purchase a limited amount of QS and lease the annual IFQ to community residents. Amendment 102 and the final rule are intended to benefit one community, Adak, which is the only community in the area with historical participation in the halibut and sablefish fisheries that is not also eligible under the western Alaska Community Development Quota (CDQ) Program. The Council and NMFS determined that under Amendment 102 and the final rule, individuals residing in communities other than Adak will still realize the majority of the benefit from halibut QS in Area 4B and sablefish QS in the Aleutian Islands, but more of the revenues will be captured in the community of Adak than are currently, and less in the larger, more accessible communities, or in communities outside of Alaska, where other QS holders reside (see section 3.1 of the RIR for additional detail).

Comment 3:

Two commenters asserted that an Aleutian Islands CQE Program was unlikely to provide the intended benefits to the community of Adak. One commenter stated that Amendment 102 does not guarantee that Adak residents receiving benefits from QS held by the CQE will continue to live in Adak. The other commenter stated that Adak’s reliance on a fishing economy is not sustainable in the long term.

Response

NMFS acknowledges the comments and agrees that Amendment 102 and the final rule do not guarantee that the community of Adak or residents of Adak will participate in, or receive benefits, from the IFQ fisheries in the Aleutian Islands. As described in the response to comment 2, Amendment 102 and the final rule provide an opportunity for a non-profit entity representing Adak to purchase QS on the open market. The Council determined, and NMFS agrees, that Amendment 102 and the final rule may provide an opportunity for Adak to improve access to the commercial halibut and sablefish fisheries in the Aleutian Islands and to provide stability to shoreside processing operations in Adak through a structure similar to the GOA CQE Program.

NMFS notes that a number of small, remote, coastal communities in Alaska are dependent on commercial fisheries for a significant portion of their economic activity. This dependence is reasonable given the communities’ proximity to salt water, lack of road access to larger communities, and limited infrastructure. As described in section 2.4.5 of the RIR and in the response to comment 2, the Aleut Corporation and Adak Community Development Corporation (ACDC) have pursued a number of strategies to develop community harvesting and processing participation in a broad range of fisheries in the Aleutian Islands. The Council and NMFS have determined that Amendment 102 and the final rule may further aid in the development of seafood harvesting and processing activities within Adak.

Comment 4

Two commenters did not support the proposed requirement for a non-profit organization (i.e., the Aleutian Islands CQE) to be the designated entity to purchase and hold halibut and sablefish QS for the Aleutian Islands CQE. One commenter noted that a non-profit CQE is exempt from paying taxes, and this would give the organization a competitive advantage over non-CQE fishermen in purchasing QS. This advantage could flow to a limited number of eligible lessees of CQE IFQ, who could use their IFQ-derived income to purchase QS. The second commenter suggested that non-profit organizations may not provide sufficient benefits to warrant their tax-exempt status.

Response

The Council and NMFS determined that a non-profit entity is the appropriate type of entity to hold halibut and sablefish QS on behalf of Adak for the Aleutian Islands CQE Program. This determination was based on the Council’s consideration of the GOA CQE Program and the objectives for the Aleutian Islands CQE Program.

The proposed rule to implement the GOA CQE Program describes that the Council selected a non-profit entity as the appropriate holder of QS for communities based on recommendations from GOA communities (68 FR 59564, October 16, 2003). These recommendations indicated that a non-profit entity could be more flexible and cost-effective than either a for-profit corporation or an existing governmental body.

The preamble to the proposed rule and section 2.6.2.2 of the RIR describe that the GOA CQE Program is premised on the ability of a non-profit entity to purchase and hold halibut and sablefish catcher vessel QS on behalf of a community, for lease to and use by community residents. The intent is to provide a long-term asset (i.e, halibut or sablefish QS) to use for individual and community benefit, that cannot be sold unless it improves the community’s ability to enhance or expand its participation in the CQE Program (e.g., the CQE could sell some amount of QS at a price that would facilitate the purchase of more QS) (see § 679.41(g)(7)). Individual QS holders and for-profit corporations could leave the community, sell their QS, or otherwise act in their own best interest, rather than in the best interest of the community. The GOA CQE Program and the Aleutian Islands CQE Program are intended to ensure that some level of access remains for community residents in the long term. The Council determined, and NMFS agrees, that designating a non-profit entity to hold QS on behalf of the community best meets this objective. The Aleutian Islands CQE Program is designed after the same concept in the GOA CQE program.

As described in section 2.6.2.7 of the RIR and in the response to comment 2, the final rule is not anticipated to have significant effects on individual participants in the IFQ fisheries or residents of non-CQE communities. NMFS expects that the final rule will allow some redistribution of QS because it is intended to have distributional effects among QS holders by promoting the transfer of QS from existing QS holders to the CQE.

The Council and NMFS considered the impacts of Amendment 102 and the final rule on non-CQE participants in the IFQ fisheries. Section 2.6.2.7 of the RIR notes that authorizing a CQE to purchase QS could create the potential for greater competition in the market for purchasing Area 4B halibut QS and Aleutian Islands sablefish QS, which could result in a higher QS price. However, a significant portion of the QS pool remains unused each year in these areas because the IFQ is not fully harvested, suggesting there is limited existing demand for QS. Section 2.6.2.3 of the RIR indicates that under the QS use caps implemented by the final rule, the Aleutian Islands CQE would be able to purchase QS that is not currently being used. Therefore, NMFS expects potential competition between individual QS holders and the CQE would be limited.

Several other factors are also likely to limit the impact of the Aleutian Islands CQE Program on non-CQE fishery participants. The most important factors are that the CQE must purchase QS on the open market, only one community is eligible to participate, and the Adak CQE will be subject to QS purchase and use limits. Section 2.6.2.7 of the RIR notes that the cumulative community use caps of 15 percent of the QS pools for halibut and sablefish (see § 679.42 (e)(4)(ii) and (f)(2)(ii)) and the block limits (see § 679.41(e)(4) and (5)) ensure that even if the Adak CQE purchases QS up to the program limits, non-CQE participants would continue to have access to the remaining QS pool without potential competition from CQEs. Additionally, the Aleutian Islands CQE Program does not affect IFQ participants’ access to QS in areas other than Area 4B for halibut and the Aleutian Islands for sablefish.

Section 2.6.4 of the RIR notes that if an Aleutian Islands CQE is provided the opportunity to purchase QS, the benefits of the use of the resulting IFQ will provide economic benefits that are not currently realized. In addition, because current demand for QS in these areas is relatively low, including a CQE in the market for QS may serve to benefit private sellers of QS.

Comment 5

Individuals that are not qualified to lease IFQ from the Aleutian Islands CQE would be disadvantaged compared to fishermen harvesting CQE-held IFQ because non-CQE fishery participants are subject to more restrictive QS and IFQ transfer and limits. These include QS block and use limits, vessel category restrictions for harvesting IFQ, and eligibility to lease IFQ.

Response

In recommending transfer and use restrictions for the Aleutian Islands CQE Program, the Council balanced the objective of promoting community access to QS and IFQ with its intent to maintain entry-level opportunities for fishermen residing in other fishery-dependent communities, consistent with the goals of the IFQ Program. The Council and NMFS do not anticipate that the provisions of Amendment 102 implemented by the final rule will have significant effects on individual participants in the IFQ fisheries or residents of non-CQE communities (see the response to comment 4 and section 2.6.2.7 of the RIR for additional detail).

The Council’s rationale for each the transfer and use provisions implemented by the final rule was examined in section 2.6.2.4 of the RIR for the action and described in the Transfer and Use Restrictions section of the proposed rule preamble. The Council’s rationale for the specific transfer and use provisions referenced by the commenter is summarized here.

The Council did not recommend restrictions on the size of QS blocks the Aleutian Islands CQE can purchase. The Council and NMFS reviewed data on the number of and size of QS blocks in Area 4B and the Aleutian Islands and determined that implementing a block size restriction would greatly limit the QS available for purchase by the CQE (see Section xxx of the RIR for additional information). The Council also recommended retaining the same QS block limits that apply to GOA CQEs for the Aleutian Islands CQE because large portions of the QS in the Aleutian Islands are available only in blocked shares. Limiting the Aleutian Islands CQE to existing unblocked QS would effectively limit the QS available to a small portion of the QS pool that is typically higher priced than the more available blocked. The Council also determined that the potential impacts on new entrants to this fishery of its recommended block restrictions would be limited because not all QS is currently being used to harvest halibut and sablefish IFQ in Area 4B and the Aleutian Islands (see Section A. Block Limits within Section 5. Transfer and Use Restrictions in the proposed rule for additional detail).

The Council recommended applying to the Aleutian Islands CQE the same regulations on the vessel categories of QS that currently apply to CQEs in Areas 3A and 3B of the GOA. Specifically, under the final rule, the Aleutian Islands CQE could purchase and hold

♦ All categories of Area 4B halibut catcher vessel QS (B, C, and D share QS);

♦ All categories of Aleutian Islands sablefish catcher vessel QS (B and C share QS); and

♦ Any amount of Area 4B catcher vessel D share halibut QS, up to the program limit of 15 percent of the total QS pool. As described in the proposed rule and section 2.6.2.4 of the RIR, the Council determined that allowing the Aleutian Islands CQE to hold D share QS would not conflict with new entrants in the Aleutian Islands IFQ fisheries because there is likely to be minimal competition between individuals and the Aleutian Islands CQE for D share QS in the Area 4B halibut QS market. As described in the proposed rule, approximately 70 percent of the D share QS in Area 4B is not used on an annual basis. This suggests that there is little market demand for D share QS in the Aleutian Islands.

The final rule would allow IFQ derived B and C catcher vessel share QS held by an Aleutian Islands CQE to be fished from a vessel of any size regardless of the QS vessel category from which the IFQ was derived. This provision is consistent with the same provisions in the GOA CQE Program on which the Aleutians Islands CQE is modeled, and would facilitate the use of IFQ on the wide range of vessel types that fish in Aleutian Island communities.

The final rule establishes limitations on the use of QS and IFQ assigned to an Aleutian Islands CQE. These limitations are consistent with regulations for the GOA CQE Program, with minor modifications to provide additional flexibility on the use of IFQ derived from QS held by an Aleutian Islands CQE. The final rule allows an Aleutian Islands CQE to lease any IFQ derived QS it holds to either eligible community residents of Adak or non-residents for a period of up to 5 years after the effective date of the regulations. After the 5-year period, the CQE would be required to lease the IFQ derived from QS it holds only to eligible community residents of Adak. The Council limited the period during which non-residents could lease IFQ from an Aleutian Islands CQE to explicitly tie the potential long-term benefits of QS held by an Aleutian Islands CQE to the residents of Adak. The five-year time period is intended to provide adequate time to accrue benefits to the community of Adak through IFQ deliveries, provide crew opportunities for residents, and earn revenue that could assist the purchase of additional QS.

Under the final rule, an eligible community resident of an Aleutian Islands CQE community is relieved from the requirement to have 150 days of experience working as part of the harvesting crew in a U.S. commercial fishery in order to lease IFQ from the Adak CQE. This provision of the Aleutian Islands CQE Program is not limited to the first five-years of the program like the non-resident IFQ leasing provision. The Council recommended removing the 150-day experience requirement for eligible community residents of Adak to accommodate younger residents of Adak who may seek employment, but lack the 150 days of experience as a crew member. Many younger fishermen have experience operating a vessel out of Adak fishing subsistence halibut, but in the western Aleutian Islands there are few commercial fisheries in which they can gain the necessary number of days of experience as crew members, compared to what is available for residents of GOA communities. This is in part due to fewer fishermen operating out of the Aleutian Islands on whose vessels one might be employed as a crew member.

Comment 6

The Aleutian Islands CQE is not required to be an owner onboard, is allowed to lease out its IFQ, and is able to benefit from QS through multiple generations. In contrast, an individual who was not initially issued QS and purchased their QS is restricted by the owner onboard requirement and is not able to lease their IFQ. Furthermore, an individual QS holder’s beneficiaries do not receive the long-term benefit of the QS after the death of the QS holder. The QS holder’s beneficiary may only lease the resulting IFQ for three years and after that time, the beneficiary must meet the eligibility requirements to hold QS and must be onboard the vessel when the IFQ is harvested, or they must transfer the QS.

Response

The comment refers to IFQ Program regulations at § 679.42(c) that require, with some exceptions, a catcher vessel QS holder to be onboard the vessel during harvest and offloading of IFQ derived from their QS. As described in the final rule to implement the IFQ Program, this requirement is intended to promote stewardship by providing active fishermen with a vested interest in the long-term productivity of the halibut and sablefish resources (58 FR 59375, November 9, 1993). By design, CQE community fishermen do not hold QS but instead are allowed to lease IFQ derived from CQE-held QS. However, the lessee is required by regulations at§ 679.42(c) and § 679.42(h)(5) to be onboard the vessel fishing the IFQ leased from the CQE during harvest and offloading, consistent with the owner onboard objective for the IFQ Program (see the Use Restrictions section of the proposed rule preamble for additional detail).

The commenter is correct that the Aleutian Islands CQE could lease IFQ to multiple generations of CQE community fishermen. NMFS notes this is consistent with the CQE Program objective to provide Adak with long-term opportunities to access the halibut and sablefish fisheries, as described in the proposed rule and in section 2.1 of the RIR. Also see the response to

comment 2.

The commenter contrasts the Aleutian Islands CQE objective to promote long-term QS holdings by the community entity with regulations at § 679.41(k) that impose a limit on the amount of time a non-CQE QS holder’s beneficiary may hold the QS after the QS holder’s death, if the beneficiary is not otherwise eligible to hold QD under IFQ Program requirements. The final rule implementing the GOA CQE Program (68 FR 59564, October 16, 2003) and the proposed rule to implement Amendment 102 describe that the Council and NMFS have determined that the CQE Program structure promotes community access to QS to generate participation in, and fishery revenues from, the commercial halibut and sablefish fisheries. This is consistent with the goals for the IFQ Program (58 FR 59375, November 9, 1993). NMFS notes that the Council has identified specific objectives for the Aleutian Islands CQE Program and rationale for specific provisions that result in different requirements for CQE and non-CQE participants in the IFQ fisheries (see the proposed rule preamble and section 2.1 of the RIR for additional detail). NMFS has determined that the final rule meets the Council’s objective to provide the community of Adak with long-term opportunities to access the halibut and sablefish fisheries, is consistent with the goals for the IFQ Program, and is not likely to have significant effects on individual participants in the IFQ fisheries or residents of non-CQE communities. Also see the response to comment 4.

Comment 7

Four commenters supported the proposed rule to allow D share IFQ to be fished on category vessels. The commenters believe that allowing IFQ derived from D share QS to be fished on vessels less than or equal to 60 feet LOA would address the economic hardship and safety concerns resulting from fishing on small vessels in the Aleutian Islands.

Response

NMFS acknowledges the comment.

9. Explain any decisions to provide payments or gifts to respondents, other than remuneration of contractors or grantees.

No payment or gift is provided under this program.

10. Describe any assurance of confidentiality provided to respondents and the basis for assurance in statute, regulation, or agency policy.

As stated on the forms, the information collected is confidential under section 402(b) of the Magnuson-Stevens Act (16 U.S.C. 1801 et seq.); and also under NOAA Administrative Order (AO) 216-100, which sets forth procedures to protect confidentiality of fishery statistics.

A Privacy Act System of Records Notice (SORN), COMMERCE/NOAA System-19, Permits and Registrations for United States Federally Regulated Fisheries, was published in the Federal Register on April 17, 2008 (73 FR 20914). An updated SORN is under DOC review.

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private.

This information collection does not involve information of a sensitive nature.

12. Provide an estimate in hours of the burden of the collection of information.

Estimated total respondents: 65, up from 64:  32 CQEs, 32 charter halibut permit holders and 1 applicant to become a CQE. Estimated total responses: 203, up from 169. Estimated total burden: 1,908, down from 2,724 hr. Estimated total personnel cost: $90,486 down from $243,100.

13. Provide an estimate of the total annual cost burden to the respondents or record-keepers resulting from the collection (excluding the value of the burden hours in #12 above).

Estimated total miscellaneous cost: $683, up from $538.

14. Provide estimates of annualized cost to the Federal government.

Estimated total burden: 257, up from 233 hr. Estimated total personnel cost: $8,453, up from $5,125.

15. Explain the reasons for any program changes or adjustments.

Program Change: A new information collection is created by adding the Aleutian Islands to the CQE Program. Adding one new CQE to the CQE Program makes 32 in total.

Application for a Non-profit Corporation to be Designated as a CQE

This application is filed only once by the CQE. Previous CQE applications are not listed.

A decrease of 6 respondents and responses, 1 instead of 7

A decrease of 1,200 hr burden, 200 hr instead of 1,400 hr

A decrease of $18,000 personnel costs, $30,000 instead of $210,000

A decrease of $48 miscellaneous costs, $8 instead of $56

Application to Transfer QS-IFQ to or from a CQE

An increase of 11 respondents, 32 instead of 21

An increase of 22 responses, 64 instead of 42

An increase of 44 hr burden, 128 hr instead of 84 hr

An increase of $2,636 personnel costs, $4,736 instead of $2,100

An increase of $147 miscellaneous costs, $384 instead of $237

Application for a CQE to transfer IFQ to an eligible community resident or non-resident (NEW)

An increase of 10 respondents and responses, 10 instead of 0

An increase of 20 hr burden, 20 hr instead of 0 hr

An increase of $740 personnel costs, $740 instead of $0

An increase of $6 miscellaneous costs, $6 instead of $0

CQE Annual Report

An increase of 1 respondent and response, 32 instead of 31

An increase of 40 hr burden, 1,280 hr instead of 1,240 hr

An increase of $1,480 personnel costs, $47,360 instead of $45,880

An increase of $3 miscellaneous costs, $102 instead of $99

Adjustments

(correction to a previously erroneous low count of annual reports)

CQE Annual Report

An increase of 7 respondents and responses, 31 instead of 24

An increase of 280 hours, 1,240 instead of 960.

An increase of $10,360 personnel costs, $45,880 instead of $35,520

An increase of $76 miscellaneous costs, $99 instead of 23.

Application for a Community Charter Halibut Permit

A decrease in costs of $89, $21 instead of $110.

16. For collections whose results will be published, outline the plans for tabulation and publication.

NMFS Alaska Region posts LLP license information on the web at http://alaskafisheries.noaa.gov/ram/llp.htm#list. The lists contain LLP groundfish and crab licenses issued as of the indicated preparation date. Data are sorted alphabetically and are updated daily. Under current regulations, vessels must be designated on the licenses and the identities of original qualifying vessels are provided for reference only.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons why display would be inappropriate.

Not Applicable.

18. Explain each exception to the certification statement.

Not Applicable.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS

This collection does not employ statistical methods.

1 Nearly all small, remote, coastal communities located in the BSAI participate in the CDQ Program that is authorized under section 305(i) of the Magnuson-Stevens Act. The CDQ Program allocates a percentage of all BSAI quotas for groundfish, prohibited species, halibut and crab to CDQ groups that represent 65 coastal communities throughout the BSAI. This allocation allows the distribution of allocation benefits to be shared among the residents of the CDQ Program communities. In contrast, the CQE Program requires communities to purchase halibut and sablefish QS for use by community residents. When the CQE Program for the GOA was developed, communities located in the BSAI did not meet the geographic scope, or intent, of the CQE Program.

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