[Federal Register: September 4, 2007 (Volume 72, Number 170)]
[Rules and Regulations]               
[Page 50787-50818]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04se07-4]                         


[[Page 50787]]

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Part IV





Department of Commerce





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National Oceanic and Atmospheric Administration



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50 CFR Part 679



Fisheries of the Exclusive Economic Zone Off Alaska; Pacific Cod 
Allocations in the Bering Sea and Aleutian Islands Management Area; 
Final Rule


[[Page 50788]]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 0612242903-7445-03; I.D. 112006I]
RIN 0648-AU48

 
Fisheries of the Exclusive Economic Zone Off Alaska; Pacific Cod 
Allocations in the Bering Sea and Aleutian Islands Management Area

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and 
Atmospheric Administration (NOAA), Commerce

ACTION: Final rule.

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SUMMARY: NMFS issues a final rule to implement Amendment 85 to the 
Fishery Management Plan for Groundfish of the Bering Sea and Aleutian 
Islands Management Area (FMP) as partially approved by NMFS, and to 
implement recent changes to the Magnuson-Stevens Fishery Conservation 
and Management Act (Magnuson-Stevens Act). This final rule modifies the 
current allocations of Bering Sea and Aleutian Islands management area 
(BSAI) Pacific cod total allowable catch (TAC) among various harvest 
sectors and seasonal apportionments thereof, establishes a hierarchy 
for reallocating projected unharvested amounts of Pacific cod from 
certain sectors to other sectors, revises catcher/processor (CP) sector 
definitions, modifies the management of Pacific cod incidental catch 
that occurs in other groundfish fisheries, eliminates the Pacific cod 
nonspecified reserve, subdivides the annual prohibited species catch 
(PSC) limits currently apportioned to the Pacific cod hook-and-line 
gear fisheries between the catcher vessel (CV) and CP sectors, and 
modifies the sideboard restrictions for American Fisheries Act (AFA) CP 
vessels. In addition, this final rule increases the percentage of the 
BSAI Pacific cod TAC apportioned to the Community Development Quota 
(CDQ) Program. The proposed rule for Amendment 85 included regulations 
that would have subdivided the annual PSC limits currently apportioned 
to the Pacific cod trawl fisheries among trawl sectors. However, NMFS 
disapproved these regulations. Therefore, this final rule does not 
subdivide the annual PSC limits for Pacific cod trawl fisheries among 
trawl sectors. This final rule is necessary to implement Amendment 85 
and reduce uncertainty about the availability of yearly harvests within 
sectors caused by reallocations and maintain stability among sectors in 
the BSAI Pacific cod fishery. This final rule also is necessary to 
partially implement recent changes to the Magnuson-Stevens Act that 
require a total allocation of 10.7 percent of the TAC of each directed 
fishery to the CDQ Program starting January 1, 2008. This final rule is 
intended to promote the goals and objectives of the Magnuson-Stevens 
Act, the FMP, and other applicable laws.

DATES: Effective January 1, 2008.

ADDRESSES: Copies of Amendment 85 and the Environmental Assessment/
Regulatory Impact Review/Final Regulatory Flexibility Analysis (EA/RIR/
FRFA) prepared for this action are available by mail from NMFS, Alaska 
Region, P. O. Box 21668, Juneau, AK 99802-1668, Attn: Ellen Sebastian, 
Records Officer; in person at NMFS, Alaska Region, 709 West 9th Street, 
Room 420A, Juneau, AK; or via the Internet at the NMFS Alaska Region 
website at http://www.fakr.noaa.gov.


FOR FURTHER INFORMATION CONTACT: Becky Carls, 907-586-7228 or 
becky.carls@noaa.gov.


SUPPLEMENTARY INFORMATION: NMFS manages the groundfish fisheries in the 
exclusive economic zone of the BSAI under the FMP. The North Pacific 
Fishery Management Council (Council) prepared the FMP under the 
authority of the Magnuson-Stevens Act, 16 U.S.C. 1801 et seq. 
Regulations governing U.S. fisheries and implementing the FMP appear at 
50 CFR parts 600 and 679.

Background

    Amendment 85 was adopted by the Council in April 2006 to modify the 
current allocations of BSAI Pacific cod among various harvesting 
sectors. Currently, the BSAI Pacific cod non-CDQ TAC is fully 
distributed among the following eight competing harvest sectors: jig, 
fixed gear (pot and hook-and-line gear) CVs less than 60 ft (< 18.3 m) 
length overall (LOA), hook-and-line CVs greater than or equal to 60 ft 
([gteqt]18.3 m) LOA, hook-and-line catcher/processor vessels (CPs), pot 
CVs less than 60 ft ([gteqt]18.3 m) LOA, pot CPs, trawl CPs, and trawl 
CVs. Several FMP amendments, implemented beginning in 1994, have 
allocated Pacific cod among these sectors. Additional background on the 
prior history of Pacific cod allocations among different fishery 
sectors and the development of Amendment 85 is contained in the 
preamble to the proposed rule (72 FR 5654; February 7, 2007).
    Amendment 85 modifies the non-CDQ sector allocations currently in 
place to better reflect historical dependency and use by sector of the 
Pacific cod resource. The allocations were based in part on each 
sector's historical retained catch in addition to socioeconomic and 
community concerns. One of the fundamental issues identified in the 
Council's problem statement was the need to revise the existing 
allocations to better reflect historical retained catch by sector, thus 
reducing the need for frequent and significant reallocations of quota 
toward the end of the year from sectors that are unable or otherwise do 
not intend to harvest their entire allocation. However, the allocations 
to the small boat sectors are intended to expand entry-level, local 
opportunities in the BSAI Pacific cod fishery. Other than providing for 
this expansion, the allocations of Pacific cod non-CDQ TAC are intended 
to formally institutionalize the historical pattern of utilization of 
this resource.
    Amendment 85 and the proposed rule to implement Amendment 85 as 
originally submitted by the Council included provisions for the CDQ 
Program that allocated 10 percent of the Pacific cod TAC to the CDQ 
Program as a directed fishing allocation, created an incidental catch 
allowance of Pacific cod for the CDQ Program, and referred to the Coast 
Guard and Maritime Transportation Act of 2006, Public Law 109-241 
(Coast Guard Act) as the basis for changes to the CDQ Program Pacific 
cod allocation. These provisions were consistent with requirements set 
forth in the Magnuson-Stevens Act, as amended by the Coast Guard Act, 
at the time Amendment 85 was submitted by the Council for Secretarial 
review. The Notice of Availability (NOA) for Amendment 85 was published 
in the Federal Register on December 7, 2006 (71 FR 70943), with a 60-
day comment period that ended February 5, 2007.
    During review by the Secretary of Commerce (Secretary) of Amendment 
85, the CDQ provisions in the Magnuson-Stevens Act were amended once 
again by the Magnuson-Stevens Fishery Conservation and Management 
Reauthorization Act, Public Law 109-479 (Magnuson-Stevens 
Reauthorization Act), enacted on January 11, 2007. The Magnuson-Stevens 
Act now requires that allocations to the CDQ Program, including Pacific 
cod, increase to ``a total allocation (directed and nontarget combined) 
of 10.7 percent effective January 1, 2008,'' and that the total 
allocation may not be exceeded. As a result of the Magnuson-Stevens 
Reauthorization Act, the portions of Amendment 85 to the FMP that 
addressed the CDQ Program provisions were no longer consistent with the

[[Page 50789]]

Magnuson-Stevens Act. On March 7, 2007, the Secretary partially 
approved Amendment 85, disapproving the CDQ Program provisions as 
inconsistent with the Magnuson-Stevens Act. As approved, Amendment 85 
revised the current BSAI Pacific cod allocations of TAC among various 
non-CDQ harvest sectors (Table 1), changed incidental catch allowances, 
removed the groundfish reserve for Pacific cod, and added a new 
appendix to the FMP.
    Shortly after enactment of the Magnuson-Stevens Reauthorization 
Act, NMFS determined that the CDQ portions of the proposed rule as 
submitted by the Council were inconsistent with the newly amended 
Magnuson-Stevens Act, and returned the rule to the Council for revision 
pursuant to section 304(b) of the Magnuson-Stevens Act. The Council 
revised the CDQ portions of the proposed rule for Amendment 85 to 
incorporate the changes brought about by the Magnuson-Stevens 
Reauthorization Act, including a 10.7-percent allocation of Pacific cod 
to the CDQ Program. The Council submitted the revised proposed rule to 
NMFS, and it was published in the Federal Register on February 7, 2007 
(72 FR 5654). The 45-day comment period on the proposed rule ended 
March 26, 2007. NMFS received a total of 16 letters on Amendment 85 and 
the proposed rule that contained 79 unique comments. A summary of these 
comments and the responses by NMFS are provided under Response to 
Comments below.

Elements of the Final Rule

    A detailed review of the provisions of Amendment 85 and its 
implementing rule is provided in the preamble to the proposed rule (72 
FR 5654; February 7, 2007), and is not repeated here. The proposed rule 
is available via the Internet and from NMFS (see ADDRESSES). The 
following provides a list and brief review of the regulatory changes 
made by this final rule to the management of the BSAI Pacific cod 
fishery. NMFS' rationale for approving portions of Amendment 85 and the 
regulatory provisions in this final rule is contained in the agency's 
response to comments.
     Increase the percentage of the BSAI Pacific cod TAC 
apportioned to the CDQ Program to 10.7 percent;
     Revise the allocations of BSAI Pacific cod non-CDQ TAC 
among various gear sectors;
     Modify the management of Pacific cod incidental catch that 
occurs in other groundfish fisheries;
     Eliminate the Pacific cod nonspecified reserve;
     Establish a hierarchy for the reallocation of projected 
unused sector allocations to other ectors;
     Adjust the seasonal allowances of Pacific cod to various 
sectors;
     Subdivide among sectors the annual PSC limits apportioned 
to the Pacific cod hook-and-line gear fisheries;
     Modify the sideboard restrictions for Pacific cod that are 
applied to the CP vessels listed as eligible under the AFA; and
     Revise the definition for AFA trawl CP and add definitions 
for hook-and-line CP, non-AFA trawl CP, and pot CP.
    As described above, the Magnuson-Stevens Act now requires that 10.7 
percent of the annual Pacific cod TAC be allocated to the CDQ reserve 
for directed and nontarget fishing combined, effective January 1, 2008. 
The 10.7 percent Pacific cod allocation to the CDQ reserve will be 
established annually in the harvest specifications process required 
under Sec.  79.20(c). The CDQ reserve will continue to be deducted from 
the Pacific cod TAC before the remaining Pacific cod TAC is allocated 
to the other fishing sectors. All catch of Pacific cod by any vessel 
that is groundfish CDQ fishing, and by any vessel [gteqt]60 ft (18.3 m) 
LOA that is halibut CDQ fishing, will continue to accrue against the 
CDQ group's annual allocation of Pacific cod and the CDQ groups will 
continue to be prohibited from exceeding their annual allocations of 
Pacific cod.
    Nine individual non-CDQ sectors will receive separate BSAI Pacific 
cod allocations. The allocations to the identified sectors were 
selected using retained legal catch history, including fishmeal, from 
1995 through 2003, and other socioeconomic and community 
considerations. The allocations better reflect historical dependency 
and use by each sector, with specific consideration to allow for 
additional growth in the small boat, entry-level sectors. These 
allocations are listed in Table 1. Because Pacific cod has been 
harvested by the current sectors since the beginning of 2007 under the 
current allocation scheme, and the number of sectors and the overall 
amount of Pacific cod available to those sectors as an allocation and 
by season will change with this amendment, the Amendment 85 sector 
allocations cannot be implemented mid-year. Therefore, the allocations, 
and the final rule implementing Amendment 85, will be effective January 
1, 2008. NMFS will amend the 2007-2008 harvest specifications to 
reflect the changes to the Pacific cod TAC allocations.

     Table 1. Percent sector allocations of Pacific cod non-CDQ TAC
------------------------------------------------------------------------
                   Sector                            % Allocation
------------------------------------------------------------------------
Jig vessels                                  1.4
------------------------------------------------------------------------
Hook-and-line/pot CV < 60 ft (18.3 m) LOA     2.0
------------------------------------------------------------------------
Hook-and-line CV [gteqt]60 ft (18.3 m) LOA   0.2
------------------------------------------------------------------------
Hook-and-line CP                             48.7
------------------------------------------------------------------------
Pot CV [gteqt]60 ft (18.3 m) LOA             8.4
------------------------------------------------------------------------
Pot CP                                       1.5
------------------------------------------------------------------------
AFA trawl CP                                 2.3
------------------------------------------------------------------------
(8) Non AFA trawl CP                         13.4
------------------------------------------------------------------------
Trawl CV                                     22.1
------------------------------------------------------------------------

    Currently, NMFS sets aside an amount of Pacific cod from some 
sectors' allocations as an incidental catch allowance for use by those 
sectors when they are directed fishing for groundfish other than 
Pacific cod. NMFS establishes an incidental catch allowance either 
through the annual harvest specifications process or inseason. Under 
this final rule, an incidental catch allowance for the fixed gear 
sectors will continue to be established at the beginning of the fishing 
year by the Regional Administrator during the annual harvest 
specifications process. The incidental catch allowance for the fixed 
gear sectors typically has been set at 500 mt. The trawl sectors 
currently do not have an incidental catch allowance established at the 
beginning of the fishing year. NMFS has not specified an incidental 
catch allowance for Pacific cod in the trawl fisheries in the recent 
past because the trawl sectors typically do not catch an amount of 
Pacific cod that would necessitate a directed fishing prohibition. 
Also, the seasonal apportionments to the trawl sectors have ensured 
that a sufficient amount of Pacific cod is left for incidental catch in 
groundfish trawl fisheries other than Pacific cod later in the year. 
However, because NMFS anticipates that the trawl sectors will fully 
harvest the Pacific cod allocations under Amendment 85, NMFS also 
anticipates it will need to establish an incidental catch allowance for 
each trawl sector. Under this final rule, each trawl sector will have a 
separate incidental catch allowance so that no trawl sector can erode 
another trawl sector's total allocation and NMFS will develop 
incidental catch

[[Page 50790]]

allowances for the trawl sectors on an inseason basis, rather than 
through the annual harvest specification process. Determining 
incidental catch needs inseason as fisheries progress will provide NMFS 
with more flexibility to adjust incidental catch needs for each trawl 
sector as a trawl sector's needs change.
    Current regulations for the annual harvest specifications process 
require that 15 percent of the BSAI TAC for Pacific cod be placed in 
the nonspecified reserve. Half of the nonspecified reserve, or 7.5 
percent of TAC, is apportioned to the groundfish CDQ reserve. NMFS 
typically apportions the remainder of the Pacific cod reserve back to 
the non-CDQ Pacific cod TAC because U.S. fishing vessels have 
demonstrated the capacity to catch the full TAC allocation. The Council 
and NMFS determined that the Pacific cod reserve is no longer needed 
because a direct allocation to the CDQ reserve is specified, and 
because the Pacific cod TAC is fully allocated among CDQ and non-CDQ 
harvesting sectors and is fully harvested. Therefore, this final rule 
removes regulations requiring that 15 percent of the Pacific cod TAC be 
placed in the nonspecified reserve during a fishing year.
    Under current regulations, if the Regional Administrator determines 
that a sector will be unable to harvest the entire amount of Pacific 
cod allocated to that sector, NMFS reallocates the projected unused 
amount of Pacific cod to other sectors to obtain optimum yield from the 
BSAI Pacific cod fishery. This procedure will continue under this final 
rule, but reallocation decisions will be based in part on the new 
reallocation hierarchy established in this final rule, and also will 
take into account the capability of a sector to harvest an additional 
amount of Pacific cod. The reallocation hierarchy is fully described in 
the proposed rule and in the regulatory text below; therefore, that 
description is not repeated here. In general, NMFS will reallocate 
projected unused allocations in any inshore sector (i.e., CV sectors) 
primarily to other inshore sectors before reallocating that amount to 
any offshore sector (i.e., CP sectors) and, secondarily, within a gear 
type before reallocating that amount to another gear type. This 
reallocation hierarchy is consistent with the Council's decision to 
increase harvest opportunities for fleets delivering shoreside and 
represents a reasonable balance of National Standard 4, that 
allocations should be fair and equitable to all fishermen, and National 
Standard 8, to consider the importance of fishery resources to fishing 
communities. Although the intent of Amendment 85 is to revise sector 
allocations to better reflect historic dependence and use by sector and 
thus reduce the frequency and amount of inseason reallocations, the 
Council and the public noted that some reallocations are likely to 
continue.
    Under existing regulations, Pacific cod allocations are further 
apportioned by season for most gear sectors to protect prey 
availability for Steller sea lions (SSLs). The overall BSAI Pacific cod 
fishery is limited to seasonal percentages of TAC of no more than 70 
percent between January 1 and June 10, and 30 percent between June 10 
and December 31. Because this final rule modifies non-CDQ sector 
allocations, this final rule also modifies the seasonal allowances 
applicable to these sectors to maintain the overall 70/30 seasonal 
split for all gear types combined and to maintain, to the extent 
possible, the current percentage of the Pacific cod TAC harvested in 
the first half of the year by the non-CDQ sectors. Therefore, this 
final rule adjusts the seasonal allowances for each sector in response 
to the changes in sector allocations. This final rule also changes the 
jig sector seasonal allowances from 40-20-40 to 60-20-20. For the 
Pacific cod allocation to the CDQ Program, this final rule adds a 
prohibition to Sec.  679.7(d) to clarify the current management measure 
that the CDQ groups are prohibited from exceeding the seasonal 
allowances of Pacific cod that are appropriate for the gear types that 
they use to catch Pacific cod CDQ. Also, the regulations regarding CDQ 
trawl seasonal allowances are revised to maintain the division between 
trawl CP and trawl CV that exists in the current regulations. The BSAI 
Pacific cod sector allowances for each sector, including CDQ, by 
season, as those seasons are specified under Sec.  679.23(e)(5), are 
listed in Table 2.

     Table 2. Seasonal allowances of BSAI Pacific cod expressed as a
              percentage of each sector=s total allocation
------------------------------------------------------------------------
          Gear Type               A season      B season      C season
------------------------------------------------------------------------
CDQ Trawl                      60%            20%           20%
------------------------------------------------------------------------
  CDQ Trawl CV                 70%            10%           20%
------------------------------------------------------------------------
  CDQ Trawl CP                 50%            30%           20%
------------------------------------------------------------------------
Non-CDQ trawl CV               74%            11%           15%
------------------------------------------------------------------------
Non-CDQ trawl CP               75%            25%           0%
------------------------------------------------------------------------
CDQ Hook-and-line CP, and      60%            40%           no C season
 hook-and-line CV [gteqt]60
 ft (18.3 m) LOA
------------------------------------------------------------------------
Non-CDQ hook-and-line CP,      51%            49%           no C season
 hook-and-line CV [gteqt]60
 ft (18.3 m) LOA, pot CP, and
 pot CV [gteqt]60 ft (18.3 m)
 LOA
------------------------------------------------------------------------
CDQ jig vessels                40%            20%           40%
------------------------------------------------------------------------
Non-CDQ jig vessels            60%            20%           20%
------------------------------------------------------------------------
All other nontrawl vessels     no seasonal    no seasonal   no seasonal
                                allowance      allowance     allowance
------------------------------------------------------------------------


Total non-CDQ percentage        1/1 - 6/10 = 68%     6/10 - 12/31 = 32%
------------------------------------------------------------------------
Total CDQ and non-CDQ           1/1 - 6/10 = 67%     6/10 - 12/31 = 33%
 percentage
------------------------------------------------------------------------


[[Page 50791]]

    Any unused portion of a seasonal allowance of Pacific cod from any 
sector other than the jig sector will continue to be reallocated to 
that sector's remaining seasons during the current fishing year. The 
Regional Administrator will continue to reallocate any projected unused 
portion of a seasonal allowance of Pacific cod from the jig sector to 
the < 60 ft (18.3 m) LOA fixed gear CV sector. Under this final rule, 
NMFS will reallocate a projected unused portion of the seasonal 
allowance for the jig sector C season on or about September 1 of each 
year, if possible, to provide the last rollover from the jig sector 
when the < 60 ft (18.3 m) LOA fixed gear CV sector may still be on the 
fishing grounds.
    The total amount of nontrawl halibut PSC for the non-CDQ fisheries 
currently is 833 mt of mortality. Typically, 775 mt is apportioned to 
the hook-and-line Pacific cod fishery and 58 mt to other nontrawl 
groundfish fisheries. This final rule does not change the total amount 
of nontrawl halibut PSC mortality allocated to the hook-and-line 
Pacific cod sectors or to the other nontrawl groundfish fisheries.
    Currently, the annual Pacific cod hook-and-line halibut PSC 
allowance is apportioned among three seasons. A seasonal halibut PSC 
allowance in the second season has not been specified in recent years; 
thus, a hook-and-line directed fishery for Pacific cod has not operated 
in the summer months. Halibut bycatch rates are typically high during 
the second season. The hook-and-line CP sector generally supports not 
providing a halibut PSC limit in the second season because the high 
halibut bycatch rates could close the directed Pacific cod fishery 
prior to the allocation being fully harvested. However, the hook-and-
line CV sector, which is constrained by the same PSC limit, is 
comprised of smaller vessels with slower catch rates and a relatively 
small Pacific cod allocation compared to the hook-and-line CP sector. 
To enable the hook-and-line CVs to fish for Pacific cod in the summer 
months when the weather is more favorable for these smaller vessels, 
this final rule divides the halibut PSC allowance annually specified 
for the hook-and-line Pacific cod fishery between two fishery sectors: 
the hook-and-line CP sector and the hook-and-line CV sector (CVs 
[gteqt]60 ft (18.3 m) LOA and CVs < 60 ft (18.3 m) LOA combined). NMFS 
can provide varying amounts of halibut PSC by season to each sector, 
tailoring PSC limits to suit the needs and timing of each sector. NMFS 
decision to disapprove the proposed subdivision of annual PSC limits 
apportioned to the Pacific cod trawl gear fisheries is explained below.
    Sideboards are harvesting and processing restrictions that were 
placed on AFA trawl CVs and AFA trawl CPs operating in the BSAI pollock 
fishery to protect the interests of other fishermen and processors that 
did not benefit directly from the AFA. This final rule removes the 
sideboard limits of BSAI Pacific cod for the AFA trawl CPs. The 
establishment of a separate Pacific cod allocation to this sector 
negates the need for the BSAI Pacific cod sideboard which protects the 
historic share of the non-AFA trawl CP sector from being eroded by the 
AFA trawl CP vessels. For the same reason, BSAI Pacific cod is added to 
the list of exceptions to the groundfish species or species groups for 
which sideboard harvest limits are calculated for the listed AFA trawl 
CPs. The halibut and crab PSC sideboard limits for both AFA sectors are 
maintained as currently specified in regulations.
    This final rule modifies or adds definitions for CPs in accordance 
with the Consolidated Appropriations Act, 2005 (Public Law 108-447). 
This final rule revises the definition for AFA trawl CP and adds new 
definitions for hook-and-line CP, non-AFA trawl CP (also known as the 
head-and-gut sector), and pot CP. The new definition for hook-and-line 
CP is substantively consistent with the Consolidated Appropriations 
Act's definition for the longline CP subsector. Also, the definition 
for ``CDQ reserve'' is revised to change and update terms and to 
generalize the cross reference. All of the various housekeeping 
revisions described in the proposed rule also are made by this final 
rule.

Element of the Proposed Rule Not Approved

    NMFS did not approve one regulatory change recommended by the 
Council and included in the proposed rule. For reasons explained below, 
NMFS did not approve the Council's recommendation to further apportion 
the Pacific cod trawl fishery crab and halibut PSC allowances among the 
trawl sectors.
    PSC regulations pertain to certain species caught in the process of 
fishing for groundfish that must be accounted for, but cannot be 
retained unless the vessel participates in the halibut and salmon 
donation program at Sec.  679.26. Regulations at Sec.  679.21 establish 
PSC limits for Pacific halibut, three species of crab, salmon, and 
herring in the BSAI trawl groundfish fisheries, and a separate Pacific 
halibut PSC limit for nontrawl gear. These regulations also establish 
allocations of each PSC limit between the CDQ and non-CDQ fisheries and 
a process for apportioning PSC among non-CDQ fisheries.
    Currently, the total amount of halibut PSC mortality for trawl gear 
in the non-CDQ fisheries is apportioned in the annual harvest 
specifications process among four fisheries, including the Pacific cod 
fishery. The current process of fishery apportionment will continue 
under this final rule. Generally, about 1,400 mt of halibut PSC 
mortality is apportioned annually to the BSAI Pacific cod trawl 
fishery, but this amount and actual use can vary from year to year. 
Crab PSC limits fluctuate as resource abundance fluctuates.
    In recent years, the trawl CV and trawl CP sectors' directed 
Pacific cod fisheries have closed most often (1) due to reaching the 
seasonal TAC, (2) to avoid exceeding specified halibut PSC allowances, 
or (3) because a fishing season has ended. Reaching a crab PSC limit 
results in closure of a specific area to directed fishing. Unlike 
reaching a halibut PSC limit, reaching a crab PSC limit typically does 
not close BSAI Pacific cod trawl fisheries, although occasional crab 
PSC closures have occurred in the past.
    The Council recommended that the amount of halibut and crab PSC 
that would be apportioned to each trawl sector for the Pacific cod 
trawl fishery under this action be proportional to each sector's 
percentage of Pacific cod harvested in the Pacific cod target fishery 
from 1999 through 2003, including Pacific cod retained for meal 
production. Accordingly, the proposed rule divided the annual PSC 
allowance of halibut and crab specified for the Pacific cod trawl 
fishery category among the trawl sectors as follows: 70.7 percent for 
trawl CVs; 4.4 percent for AFA trawl CPs; and 24.9 percent for non-AFA 
trawl CPs. Because the AFA and non-AFA trawl CVs would share a Pacific 
cod allocation, the Council decided that this sector also should 
receive combined halibut and crab PSC allowances.
    The Council intended the apportionment of halibut and crab PSC 
among the trawl gear sectors that target Pacific cod to allow each 
sector to better plan its operations by being able to manage its PSC 
use during the fishing year without its PSC being eroded by another 
sector. Because the Council's apportionment of halibut and crab PSC was 
proportional to a trawl sector's harvest of Pacific cod in a target 
fishery, those sectors that harvested Pacific cod primarily as a target 
species, rather than as a species caught incidentally in other 
groundfish fisheries, would have received proportionally higher PSC 
allowances. Under this apportionment,

[[Page 50792]]

the trawl CV and AFA trawl CP sectors would have received higher PSC 
allowances than they have historically used or needed, and the non-AFA 
trawl CP sector would have received significantly less PSC than it has 
historically used or needed to optimize groundfish harvest under 
current PSC limits.
    During its deliberation on adoption of Amendment 85, the Council 
understood and acknowledged that the percentage of halibut and crab PSC 
apportioned to the non-AFA trawl CP sector could be constraining 
compared to average historic use, but chose not to modify its decision. 
The Council determined that the amount of PSC that would be apportioned 
to the non-AFA trawl CP sector would fall within the range of what this 
sector has caught historically.
    Under the Council's recommendation and the proposed rule, the non-
AFA trawl CP sector would have received 22 percent less halibut PSC and 
37 percent less Zone 1 bairdi (Chionoecetes bairdi) crab PSC than it 
has used historically to prosecute its directed Pacific cod fishery and 
only about the average amount of opilio (Chionoecetes opilio) crab PSC. 
Conversely, the AFA trawl CP and the trawl CV sectors would have 
received about 200 percent and 40 percent more halibut PSC, 19 percent 
and 116 percent more bairdi crab PSC, and 3,144 percent and 20,904 
percent more opilio crab PSC, respectively, than these sectors have 
used historically.
    Regulations implementing the FMP must be consistent with the 
Magnuson-Stevens Act, including the national standards, and other 
applicable law. NMFS determined that further apportionment of halibut 
and crab PSC among Pacific cod trawl sectors as proposed by the Council 
is inconsistent with National Standards 1, 4, and 9 of the Magnuson-
Stevens Act. National Standard 1 requires that fishery management 
measures prevent overfishing while maintaining optimum yield from each 
fishery, National Standard 4 requires allocations to be fair and 
equitable among affected fishermen, and National Standard 9 requires 
that bycatch and the mortality of any bycatch be minimized to the 
extent practicable. Under the existing open access management of the 
non-AFA Pacific cod trawl fishery, NMFS determined that the non-AFA 
trawl CP sector is unlikely to be able to harvest its entire allocation 
of Pacific cod with the significant reductions in the proposed amount 
of halibut and crab PSC as detailed above. This would result in a de 
facto reduction in the non-AFA trawl CP Pacific cod allocation and 
would likely reduce this sector's ability to harvest other targeted 
species. The Council did not provide any explanation as to why an 
additional reduction in this sector's harvest of Pacific cod and other 
target species not the subject of this final rule is appropriate or 
consistent with National Standard 4 or other applicable law. 
Additionally, because the amount of PSC allocated to the AFA trawl CP 
and the trawl CV sectors is so much greater than their historical 
needs, the proposed PSC allocations to these sectors may create a 
disincentive for these sectors to minimize their bycatch of prohibited 
species, which is not consistent with National Standard 9. Finally, 
because the non-AFA trawl CP sector harvests a significant majority of 
species other than pollock and Pacific cod, an inconsistency with 
National Standard 1 exists. The non-AFA trawl CP sector would likely 
not have PSC remaining from its Pacific cod fishery that could then be 
used to achieve optimum yield from its other BSAI groundfish fisheries.
    Based on the reasons discussed above, therefore, NMFS disapproved 
the apportionment of the annual PSC allowances of halibut and crab 
mortality among the Pacific cod trawl gear sectors. Regulations 
pertaining to this element are not included in this final rule. These 
apportionments will continue to be specified during the annual harvest 
specifications process.
    NMFS notes that a separate amendment to the FMP, Amendment 80, was 
approved by the Secretary on July 26, 2007. Amendment 80 primarily 
allocates several BSAI non-pollock trawl groundfish fisheries, halibut 
PSC, and crab PSC among fishing sectors, and facilitates the formation 
of harvesting cooperatives in the non-AFA trawl CP sector. The proposed 
rule to implement Amendment 80 was published in the Federal Register on 
May 30, 2007 (72 FR 30052) and was available for public comment until 
June 29, 2007.

Changes in Regulations from the Proposed Rule to the Final Rule

    NMFS made several changes to the proposed regulatory text in this 
final rule. First, NMFS has removed proposed Sec.  679.21(e)(3)(v) from 
the final rule. Proposed Sec.  679.21(e)(3)(v) included the proposed 
PSC allowances for the trawl sector which NMFS disapproved for the 
reasons explained above. Proposed Sec.  679.21(e)(3)(vi) reverts back 
to Sec.  679.21(e)(3)(v) in this final rule as a result of removing 
proposed Sec.  679.21(e)(3)(v). NMFS also has removed references to 
proposed Sec.  679.21(e)(3)(v) from the final rule.
    Second, the proposed regulatory text at Sec.  679.20(a)(7)(i)(B)(1) 
regarding CDQ seasonal allowances combined all CDQ trawl vessels into 
one group. This final rule revises the proposed regulatory text to 
maintain the division between trawl CP and trawl CV that exists in the 
current regulations. No changes to the CDQ Program seasonal allowances 
were intended by the Council.
    Last, the proposed regulatory text at Sec.  679.20(a)(7)(iii)(B) 
inadvertently included the heading ``trawl catcher/processor sectors.'' 
This heading is changed in this final rule to ``trawl gear sectors'' 
because this part of the reallocation hierarchy applies to all trawl 
gear sectors, not just the trawl CP sectors.

Response to Comments

    As mentioned above, NMFS received 16 letters containing 79 unique 
comments during the public comment periods. Two non-industry letters 
were received and 14 letters were received from the fishing industry. A 
summary of those comments, grouped by subject matter, and NMFS' 
responses follow.

Comment on the Intent of Amendment 85

    Comment 1: One commenter supports the intent of Amendment 85 to 
modify the allocations of Pacific cod by codifying the fishery as it is 
actually occurring with the goal of reducing inseason adjustments 
(reallocations) from the trawl sectors to the hook-and-line sectors. 
Another commenter supports the intent of Amendment 85 to modify the 
allocations of Pacific cod to various sectors to better reflect 
historic usage.
    Response: NMFS notes the support for Amendment 85 and clarifies 
that one intention of this action is to better reflect historic use, 
not current use, as noted in this excerpt from the Council's problem 
statement: ``To reduce uncertainty and provide stability, allocations 
should be adjusted to better reflect historic use by sector. The basis 
for determining sector allocations will be catch history as well as 
consideration of socio-economic and community factors.''

Comments on Data Used

    Comment 2: The catch history information used in Amendment 85 was 
based on the best scientific information available (1995-2003 WPR 
(Weekly Production Report) and fish ticket data for retained catch). 
Preliminary data from 2004 and 2005 were also considered. It is 
appropriate to use WPR data to calculate catch history by sector for 
the CPs because it is the only data set common to all CP vessels. The 
use of WPR data was well noticed to the

[[Page 50793]]

public. The non-inclusion of fishmeal was consistent with all previous 
Council actions involving allocation.
    Response: NMFS agrees that the catch history information used to 
develop Amendment 85 and presented in the proposed rule was based on 
the best scientific information available, consistent with National 
Standard 2 of the Magnuson-Stevens Act. Only legally retained catch was 
used in determining harvest history to avoid rewarding sectors with a 
high discard rate of Pacific cod. However, data presented in the EA/
RIR/initial regulatory flexibility analysis (IRFA) and considered by 
NMFS in its decision to approve the non-CDQ allocations in Amendment 85 
did include cod destined for fishmeal production because it is legally 
retained catch. The analysis used data from Federal WPRs, which include 
fishmeal data, and the Alaska Department of Fish and Game (ADF&G) fish 
tickets to calculate sector specific harvest history. These databases 
were used because they are consistent across all sectors and every 
sector's production of Pacific cod is weighed and reported on WPRs and/
or fish tickets.
    Total harvest was calculated based on retained legal harvest 
(including Pacific cod that was turned into fishmeal as the primary 
product) from WPRs and ADF&G fish tickets. In addition, total harvest 
(retained and discarded cod, including fishmeal) from NMFS blend data, 
and the catch accounting database was provided in Section 3.3.5 (Table 
3-24) of the analysis. The NMFS blend data and data from the catch 
accounting database (used since 2003) utilize observer data, shoreside 
processor landings data, and fish tickets. In the cod target fishery, 
blend data are calculated from partial haul samples, including 
discards. Observer estimates are extrapolated for some sectors because 
of varying levels of observer coverage. Because the AFA trawl CP sector 
is 100 percent observed, the best information available for that sector 
would be the blend data. However, not all sectors would be treated 
equally if blend data were used because not all sectors are 100 percent 
observed. Therefore, the decision by NMFS to use WPR data and ADF&G 
fish tickets, and to include cod destined for fishmeal in the 
determination of harvest history is fair and equitable, and is 
consistent with National Standards 2 and 4 of the Magnuson-Stevens Act.
    Comment 3: The range of dates selected seriously over-weighted the 
pre-Amendment 46 period, an inept historical analogue to the current 
fishery and a period of time for which Amendment 85 was explicitly 
designed to supersede in order to better reflect current use and 
dependence. The express purpose of Amendment 85 is to conform 
allocations to existing realities. The years most relevant to existing 
realities are the most recent years and the Council failed to consider 
those years.
    Current allocations are based on historical usage prior to 1997, 
and the Council's problem statement seeks to address the fact that 
``the current allocations do not correspond with actual dependency and 
use by sectors.'' Allocations set in 1997 closely tracked actual usage 
at that time to determine what are now the current allocations. 
Therefore, any history prior to 1997 should not be used because it is 
different from the ``actual use'' which Amendment 85 is intended to 
reflect.
    Beginning in 1998, Pacific cod had to be retained by all vessels as 
long as directed fishing was open; no sector should be penalized for 
discarded fish that were legally discarded prior to that. Comparing 
sectors that only target cod with sectors that both target and have 
incidental catches of cod is not comparing apples to apples. The 
Council considered data that contained only retained catch, so they 
understate the amount of Pacific cod the non-AFA trawl CPs needed to 
prosecute other fisheries in the years prior to 1998. Under the current 
regulatory scheme that fish would be retained and counted.
    In 1999, the AFA identified a number of AFA vessels and granted 
them exclusive access to BSAI pollock. The non-AFA trawl CPs were 
excluded from targeting pollock and increased their harvest share of 
Pacific cod. All but one of the AFA trawl CPs ceased to target Pacific 
cod.
    Rewarding one sector over the other for legal discard activity from 
10 years prior to final Council action does not correspond to 
dependencies developed in light of the current management era, which 
began with a new cod allocation in 1997, 100 percent mandatory 
retention in 1998, and the AFA in 1999 which preempted the head-and-gut 
(H&G) fleet from the largest groundfish fishery in North America. 
Therefore, earlier years do not indicate ``present participation'' or 
``actual use.''
    Response: As stated in the response to Comment 1, the allocations 
established by Amendment 85 and this final rule are intended to better 
reflect a sector's historic use, not current use. In referencing the 
Council's problem statement, the commenter appears to equate ``actual'' 
with current, but this is not what the Council meant by ``actual.'' The 
problem statement also states, ``The basis for determining sector 
allocations will be catch history as well as consideration of socio-
economic and community factors.'' One year or just a few recent years 
is not reflective of catch history and dependence over time. No one 
year in the history from 1995 to 2003 was given more weight than any 
other.
    The Council had several options available in setting the allocation 
percentages, including the harvest histories from several specific set 
of years, and an option to select direct allocation percentages from 
within the range of analyzed percentages. The Council chose to select 
allocations for the non-CDQ sectors that were within the range of 
analyzed percentages, and that more closely represent an average of 
retained catch for most sectors from 1995 through 2003.
    Harvest history for each sector was based on annual retained catch. 
The data presented in the EA/RIR/FRFA include historic harvest from 
1995 through 2003 as the primary basis for determining historic use of 
Pacific cod by sector, although data from 2004 to 2005 are provided as 
well. The starting year of 1995 was chosen because it includes data 
from the early years of sector allocations of Pacific cod TAC that 
began in 1994 with the implementation of BSAI Amendment 24 to the FMP 
(59 FR 4009, January 28, 1994). This set of years also includes changes 
in Pacific cod harvest due to impacts beginning in 1998 from 
implementation of improved retention/improved utilization measures to 
reduce discards, from AFA legislation in 1999, and from Steller sea 
lion protection measures beginning in 2001, all of which had impacts on 
all sectors to varying degrees. Pacific cod has been a valuable species 
for a long time, therefore, it is important to also consider the time 
period before these major legislative and regulatory programs to 
determine historic dependence and use. Also, consideration of just 
three or four recent years does not show dependency by the sectors over 
time and may be unduly biased because of increased market demand for 
Pacific cod in recent years for some products, potential decreased 
participation due to BSAI crab rationalization, and the likelihood of 
competition for Pacific cod among sectors in anticipation of this 
action.
    At the time the Amendment 85 analysis was initiated by the Council 
in late 2004, the data from 2003 were the most recent available. Rather 
than continually adding years as the action progressed, the data 
analyzed for the allocation options stopped with the data from 2003. 
The Council and NMFS

[[Page 50794]]

considered more recent (2004 and 2005) harvest data from the NMFS catch 
accounting database in reviewing harvest history to illustrate recent 
harvest trends as that information became available, but it was not 
available in the same format as the data from 1995 through 2003. 
However, for the reasons stated above, this two-year data set was not 
used as the sole basis for the allocations. Additionally, the data 
showed that some sectors increased their harvest of Pacific cod during 
the recent past, compared to their 1995 through 2003 harvest, and were 
not constrained by their allocation in doing so because they did not 
harvest their entire allocation. Not all sectors had the advantage of 
such flexibility. Therefore, based upon all these reasons, focusing on 
more recent years does not provide an equitable standard upon which to 
assess the dependence of Pacific cod by all sectors. The use of data 
from 1995 through 2003 provides a more appropriate basis to determine 
historic harvest share.
    In 1994 under Amendment 24, the trawl sectors were allocated 54 
percent of the Pacific cod TAC, the fixed gear sectors received 44 
percent, and the jig gear sector received 2 percent. This allocation 
was approximately equal to the average percent of Pacific cod taken 
with trawl gear or fixed gear between 1991 and 1993. In 1997 under 
Amendment 46, the allocation to the trawl sector was reduced to 47 
percent and then equally divided between trawl CPs and trawl CVs. The 
reduced allocation to the trawl sector was determined by an industry 
negotiating committee and closely represented the harvest percentages 
taken by trawl and fixed gear at that time while retaining the 2-
percent allocation for jig gear. The split between trawl CVs and trawl 
CPs was agreed upon by a separate negotiation between representatives 
of the trawl sectors to maintain a directed fishery for trawl CVs which 
were more dependent on directed fishing for Pacific cod. These basic 
trawl and fixed gear percentage allocations of Pacific cod TAC have 
remained unchanged since 1997. The fixed gear sectors were divided in 
2000 and the pot sectors in 2004, but the overall split between trawl 
and fixed gear sectors and between trawl CPs and trawl CVs did not 
change.
    The high discard rates of Pacific cod is an issue that the Council 
has been addressing for some time. The problem statement for Amendment 
46 states: ``Management measures are needed to ensure that the Pacific 
cod TAC is harvested in a manner which reduces discards in the target 
fisheries, reduces PSC mortality, reduces nontarget bycatch of Pacific 
cod and other groundfish species, takes into account the social and 
economic aspects of variable allocations and addresses impacts of the 
fishery on habitat.''
    The Council's intent under Amendment 85 was to calculate historic 
catch by using retained harvest of Pacific cod, because Pacific cod is 
required to be retained (in both the directed fishery, and up to the 
maximum retainable allowance when the directed Pacific cod fishery is 
closed) and it was not the intent to ``reward'' sectors that have 
higher discards of Pacific cod. This is why discarded Pacific cod was 
not included in the harvest history data. All of the harvest data 
provided were considered in the allocation decision by the Council and 
by NMFS. Most sectors have incidental catch of Pacific cod in their 
fisheries. The exceptions are the jig and pot gear sectors. By using 
historic catch over the same set of years and using the same data set 
for all sectors (see response to Comment 2), all sectors were treated 
fairly and equitably, consistent with National Standard 4 of the 
Magnuson-Stevens Act.
    Comment 4: The use of WPRs to calculate the round weight of cod 
harvested by the AFA trawl CP sector for the years after 1998 is a 
significant source of error in the catch history tables set forth in 
the draft analysis. The use of observer reports and scale weights is 
universally recognized as a more accurate way of calculating a vessel's 
total catch than the somewhat antiquated WPR approach. The use of WPR 
data as a basis for the AFA trawl CP catch history is inconsistent with 
the requirement that management measures be based on ``the best 
scientific evidence available.'' The draft analysis should be revised 
to clarify that observer data (not WPRs) represent the best available 
data for the post-1998 catch history of the AFA trawl CP sector.
    Response: The Council's and NMFS' use of WPR data rather than NMFS 
blend data and the catch accounting database, which both use observer 
data as one component, is explained in the response to Comment 2. WPR 
data and blend data estimate catch using different methods. WPR data 
represents a consistent database across all sectors; every sector's 
product is weighed, and landed weights are converted to round weights. 
The blend data estimate catch based on vessel catch reports augmented 
by observer data, and are used for in-season management. The blend data 
use observer estimates of discards, which affect the total catch 
estimates. In the cod target fishery, observer estimates are based 
primarily on partial haul sampling. In general, CPs < 125 ft (38.1 m) 
LOA are observed 30 percent of the time, and blend data use WPR data 
when there are no observer data available. Finally, during the years 
considered to establish allocations (1995 2003), the more accurate flow 
scales were used more extensively in the AFA CP sector than in other 
sectors. Because the AFA trawl CP sector is 100 percent observed, the 
best information available for that sector would be the blend data. 
However, blend data are not available by vessel length for the CV 
sectors, which primarily affects the < 60 ft (18.3 m) fixed gear CVs. 
Also, the non-AFA trawl CPs < 125 ft (38.1 m) LOA are observed 30 
percent of the time, so WPR data are used when there are no observer 
data available. These two datasets rely on different estimation methods 
and do not provide identical estimates of catch by sector. Use of blend 
data for some sectors and WPR data for other sectors would be 
problematic because any estimation error among sectors could be 
exacerbated if different datasets are used to determine sector specific 
allocations. Therefore, the best available data when comparing Pacific 
cod harvests among all sectors for the determination of harvest history 
is WPR data and ADF&G fish tickets (see response to Comment 2). 
Acknowledging that observer data are used to monitor catch for this one 
sector because it is 100 percent observed would not change the decision 
on the amendment. Therefore, no changes will be made to the analysis 
concerning this subject.
    Comment 5: The data used in the draft analysis excludes Pacific cod 
utilized in the production of meal from the AFA trawl CP's catch 
history. It is inappropriate for the draft analysis to exclude or 
otherwise discount Pacific cod used for meal production from any of the 
tables used to depict catch history for the AFA trawl CP sector. There 
is no justification for excluding the official catch data from an 
analysis that purportedly reflects the catch history of this sector. 
The combined effect of using WPR-based catch accounting to calculate 
the AFA trawl CP catch history and excluding the catch used to make 
meal results in an inaccurate estimate of the sector's catch history 
that understates the AFA trawl CP sector's historic use and dependency 
on cod. The draft analysis should be revised to clarify that meal is a 
``legally retainable product'' insofar as that term is used in 
connection with Amendment 85 and other regulations governing the BSAI 
groundfish fishery; and that all legally retained cod taken as bycatch 
in

[[Page 50795]]

the directed pollock fishery will be included in the AFA trawl CP 
sector's catch history for purposes of Amendment 85.
    Response: The concern about fishmeal not being included in 
calculations of harvest history was a result of some commenters relying 
on a draft analysis distributed prior to the April 2006 Council 
meeting. As explained in the response to Comment 2, WPR data represent 
the best available information for comparing Pacific cod catch across 
and among sectors. WPR data include Pacific cod destined for fishmeal. 
However, in the early development of the Amendment 85 analysis, data 
for Pacific cod destined for fishmeal were removed from the WPR data 
and Council analytical documents up to the April 2006 Council meeting 
continued to exclude fishmeal data. At the April 2006 Council meeting, 
in light of public comment, WPR data that included fishmeal data was 
provided for Council consideration. As explained in response to Comment 
2, the history considered in setting non-CDQ allocation percentages in 
Amendment 85 included Pacific cod that was turned into fishmeal as the 
primary product. Several tables that incorporated fishmeal in the 
harvest history were presented to the Council in April 2006 for its 
consideration and similar tables were included in the Secretarial 
review draft analysis issued in January 2007. The analysis was not 
revised in light of this comment because the data on fishmeal were 
considered and included in setting the Pacific cod allocation to the 
AFA trawl CP sector and the historic catch data including fishmeal are 
presented in the analysis.
    Comment 6: The H&G sector allocation of 13.4 percent is 0.2 percent 
less than the sector's straight 95-03 average. The action was taken in 
2006, however the last year considered was 2003. This sector's 
``historic use'' and ``actual dependency'' are not adequately reflected 
if 2004 and 2005 are not taken into consideration for a final action 
taken in 2006. The Magnuson-Stevens Act instructs that recency must be 
considered as well. By allocating the H&G sector an amount of cod less 
than its average harvest for the historical period of 1995 to 2003, the 
Council simply ignored the present participation consideration.
    Response: NMFS disagrees that the non-AFA trawl CP sector was 
allocated an amount of Pacific cod that is less than its average 
historic harvest for the period 1995 to 2003 (average historic 
harvest). NMFS believes that the commenter's reference to 13.6 percent 
is likely based on data in the analysis that excludes fishmeal in the 
calculation of average sector harvest share (see Table 3-11 in the EA/
RIR/FRFA). The Council and NMFS included fishmeal in determining 
historic harvest. When fishmeal is included in the calculation, the 
head-and-gut (non-AFA trawl CP) sector average historic harvest from 
1995 to 2003 is 13.4 percent. The non-AFA trawl CP sector received 
exactly its 1995 to 2003 average historic harvest as its allocation 
under Amendment 85. The Council and NMFS also considered more recent 
participation in 2004 and 2005, but for reasons provided in the 
response to Comment 3, chose not to include more recent participation 
in determining historic use and dependence.
    Comment 7: The draft analysis should be revised to include at least 
one table (based on official catch data and including fish utilized in 
meal production) that clearly shows the total retained catch of cod by 
the AFA trawl CP sector during the period following adoption of the AFA 
(e.g., the years 1999-2003).
    Response: Appendix G of the analysis prepared for Amendment 85 and 
this rulemaking (see ADDRESSES) includes Pacific cod catch data, 
including fishmeal, for the AFA trawl CP sector for the years 1995 
through 2003. Therefore, NMFS does not need to revise the analysis to 
include this table.
    Comment 8: Neither the EA/RIR/IRFA before the Council nor the 
Secretarial draft had simply one table which showed the complete 
picture of each sectors' history. It takes three tables to complete the 
1995-2005 picture.
    Response: Table 3-24 in the Secretarial review draft of the EA/RIR/
IRFA gives the data for BSAI Pacific cod non-CDQ allocations, catch and 
reallocations by sector from 1995 through 2005. The proposed rule 
purposely used two tables and the Secretarial review draft analysis 
used three to present the historical catch data as the average share of 
the retained Pacific cod harvest over various time periods. Table 3-9 
in the EA/RIR/IRFA was used to show the complete picture of each 
sector's history for the years under consideration for allocations 
(1995 - 2003), and Table 3-12 shows the catch history for 2004 and 2005 
in a two-part table. The data from 1995 through 2003 used in Table 3 in 
the proposed rule were from a different source than the data for 2004 
and 2005 used in Table 4. Separate tables were used to help draw 
attention to this fact in the proposed rule and for the same reason in 
the EA/RIR/FRFA.
    Comment 9: The proposed allocation to the H&G sector cannot be 
justified by the fact that the H&G sector had a lower harvest share in 
1995-1998, nine to twelve years ago and prior to the implementation of 
several significant regulatory changes culminating in the AFA that 
fundamentally changed the dynamics of the fishery, and that as a result 
its ``average historical'' retained catch was 13.4 percent. The 
sector's performance in those earlier years is of no relevance to the 
goal that the Council was seeking to achieve.
    Response: NMFS disagrees. The reasons why data from 1995 through 
1998 are included in the calculation of average historic harvest are 
explained in the response to Comment 3. While the data may represent a 
period of time when the non-AFA trawl CP sector was not maximizing its 
retained harvest of Pacific cod, it does represent a period of time 
when other sectors were maximizing their harvest. The Council's goal 
was to adjust allocations ``to better reflect historic use by sector.'' 
NMFS determined that the years selected by the Council are consistent 
with that goal.
    Comment 10: The Council was not required to use one particular set 
of ``correct'' years in conforming the allocations to existing reality, 
but the allocation to the non-AFA trawl CP sector was clearly beyond 
any rational assessment of ``actual use.'' Within the range of options 
presented to the Council in the Amendment 85 document (April draft), 
the period from 2000 to 2003 clearly was most reflective of actual 
current participation in the fishery. Under that approach, the non-AFA 
trawl CP sector averaged 16.2 percent. At the other extreme, under the 
option least reflective of actual current participation, from 1995 to 
2002, the non-AFA trawl CP sector average 13.2 percent. Incredibly, the 
Council chose to allocate an even smaller share to the non-AFA trawl CP 
sector than the 1995-2003 average of 13.6 percent. The Council's 
proposal of 13.4 percent does not reflect the non-AFA trawl CP sector's 
current or even its relevant recent participation in this fishery. This 
reduction was not part of an across-the-board cut that treated all 
sectors equitably. Some sectors received an increase above their actual 
use and the non-AFA trawl CP sector received the largest decrease.
    Response: See the response to Comment 3 for a discussion of the 
years considered to determine average historic harvest. The non-AFA 
trawl CP sector catch history from 1995 through 2003 is 13.6 percent 
only if fishmeal is not included. However, the Council's allocation 
recommendation included Pacific cod that was turned into fishmeal as 
the primary product when

[[Page 50796]]

developing the Pacific cod sector allocations because Pacific cod 
destined for fishmeal production is legally retained catch (see 
response to Comment 2). Table 3-119 of the EA/RIR/FRFA shows that when 
fishmeal is included in the calculation, which the Council did in 
taking final action, the non-AFA trawl CP sector's average from 1995 
through 2003 matches exactly the new allocation: 13.4 percent of the 
non-CDQ Pacific cod TAC. Some sectors received allocations that are 
greater than their historic harvest during 1995 through 2003 and others 
less, but the non-AFA trawl CP sector was the only sector to receive 
exactly its average share of the retained harvest from 1995 through 
2003.
    Comment 11: Comparing the harvest information from 2004 and 2005 
with the Amendment 85 allocations reveals that the non-AFA trawl CP 
sector suffered nearly an order of magnitude loss greater than any 
other sector (most of which received allocations at or above their 
2004-2005 average). Comparing the Amendment 85 allocation to the 
average of 1998-2003 (a range from when cod became a 100-percent 
retention species to the last year of data the Council had when making 
their decision), the non-AFA trawl CP fleet still lost far more than 
any other sector going from an average of 15.7 percent to 13.4 percent 
(relative loss of 14.5 percent).
    Response: The Council had harvest data from 2004 and 2005 available 
when it took final action on Amendment 85. It was not available in the 
same format as the years from 1995 through 2003, but it was considered 
by the Council. The non-AFA trawl CP sector allocation is exactly its 
catch history from 1995 through 2003. As stated previously (see 
responses to Comments 2 and 3), the Council chose to look at history 
and dependency over a number of years, not just one or two recent 
years. Although the non-AFA trawl CP sector's retention of Pacific cod 
has increased over the last several years, that sector always had the 
opportunity to retain Pacific cod in higher amounts than they 
historically did. For various reasons, the sector chose to focus on 
other species as a business decision. The Council determined that the 
new allocations were needed to better reflect historic use and chose 
not to define historic use as just the last two or three years.

Comments on Allocation Issues

    Comment 12: The increase in allocation percentage to fixed gear 
from trawl gear is consistent with the historic trend in the way the 
BSAI cod fishery is prosecuted as well as with previous Council actions 
regarding BSAI cod allocations in Amendments 24 and 46. Stabilizing the 
increased historic proportion of fixed gear harvest via allocation of 
BSAI Pacific cod in Amendment 85 will ensure the continued experience 
of reduced halibut and crab bycatch, improved product quality, and 
reduced benthic impacts associated with fixed gear cod fisheries as 
compared to trawl cod fisheries.
    Response: Amendment 85 is intended to better reflect historic usage 
by the various harvest sectors while addressing coastal community 
needs. The Pacific cod allocations to the trawl and fixed gear sectors 
set in 1994 under Amendment 24 (54 percent and 44 percent, 
respectively), were approximately equal to the average percentage of 
Pacific cod taken with these gear types during 1991 through 1993, with 
a 2-percent allocation for jig gear. The Pacific cod allocations set in 
1996 under Amendment 46 were arrived at by industry negotiation and 
were chosen to represent more closely the harvest percentage taken by 
trawl and fixed gear sectors at that time (47 percent and 51 percent, 
respectively), while maintaining the 2-percent allocation for jig gear. 
Under Amendment 85, if the harvest sectors were similarly grouped, the 
allocations would be 37.8 percent for trawl gear, 60.8 percent for 
fixed gear, and 1.4 percent for jig gear. NMFS has determined that the 
sector allocations proposed under Amendment 85 better reflect the 
historic use by the various harvest sectors as a whole than do the 
current sector allocations, and has approved them. NMFS notes the 
second comment.
    Comment 13: All sectors received amounts that reflect recent 
participation, except the AFA CPs which received more, and the small 
boat fleets which also received much more than their history, as a 
policy decision. Only the H&G fleet has suffered a set back so large 
that both its directed fishery and its non-cod directed fisheries are 
jeopardized, while the other sectors' annual fish plans were not 
affected.
    Response: NMFS approved the non-CDQ sector allocation percentages 
in Amendment 85. The following is NMFS' rationale for that decision. 
Amendment 85 will separate trawl CPs into two sectors, AFA and non-AFA, 
for purposes of Pacific cod allocations. The AFA trawl CP fleet will be 
restricted to a separate allocation slightly greater than its historic 
catch from 1995 through 2003, but 62.3 percent below its current 
sideboard limit for catch of Pacific cod. Separating the two sectors 
will protect the historic catch of the non-AFA trawl CPs better than 
leaving these two sectors combined with a lower shared allocation that 
reflects their combined history, but with the same AFA sideboard limit. 
Although the AFA trawl CP sector decreased its average harvest share 
between 2000 and 2003, this fleet is a cooperative that more likely 
will catch its Pacific cod allocation in a manner that minimizes the 
bycatch of non-target species. Bycatch is a consideration under 
National Standards 4, 5, and 9 of the Magnuson-Stevens Act. Because the 
allocation to the AFA trawl CP sector is slightly higher than this 
sector's historic catch, it should be sufficient for this sector to 
cooperatively manage its allocation and maintain a directed fishery, in 
addition to meeting its needs for incidental catch in its pollock and 
yellowfin sole fisheries. This ability to maintain the opportunity for 
these few directed fisheries is important because AFA sideboard 
provisions restrict this sector's ability to participate in other BSAI 
fisheries and AFA trawl CPs are prohibited from fishing in the Gulf of 
Alaska.
    Only the non-AFA trawl CP sector will receive an allocation equal 
to its exact average historic harvest share from 1995 through 2003. The 
allocation to this sector is reflective of its dependence on the 
Pacific cod fishery over many years. About half of its historic Pacific 
cod harvest occurs as incidental catch in flatfish (primarily yellowfin 
sole and rock sole), Atka mackerel, and rockfish fisheries. The BSAI 
flatfish fisheries are the primary revenue source for this sector and 
often incur high incidental catches of Pacific cod. Note that the trawl 
CP sectors combined have contributed 49.1 percent on average to the 
total annual reallocations of Pacific cod to other non-trawl sectors 
between 2000 and 2004. Based on environmental considerations, the 
nature of these sectors' fisheries, average historic harvest, and to 
protect the non-AFA trawl CP harvest, NMFS determined that the 
allocations under Amendment 85 to the trawl CP sectors are a reasonable 
balance of the National Standards under the Magnuson Act.
    The hook-and-line CV [gteqt]60 ft (18.3 m) LOA sector will receive 
an allocation above its average historic harvest, and this allocation 
will no longer be shared with the hook-and-line CV < 60 ft (18.3 m) LOA 
sector. This will allow Pacific cod to remain open to directed fishing 
for a longer period of time. Existing regulations governing bycatch 
require that all Pacific cod be retained when directed fishing is open. 
Thus, discard of Pacific cod by the hook-and-line CV

[[Page 50797]]

[gteqt]60 ft (18.3 m) LOA sector should be reduced when targeting other 
species, particularly Pacific halibut, and to a lesser extent in its 
sablefish and rockfish fisheries, an important consideration under 
National Standards 4, 5, and 9.
    The allocations are not based solely on historic harvest share, but 
also are based on socioeconomic considerations, consistent with 
National Standard 8. For this reason, the allocations are higher than 
the average historic harvest for the jig sector and the fixed gear CV 
< 60 ft (18.3 m) LOA sector. Under National Standard 8, NMFS must take 
into account the importance of fishery resources to fishing communities 
to provide for the sustained participation of such communities. By 
maintaining allocations above the average harvest history for these two 
entry level sectors, Amendment 85 maintains and expands local 
opportunities for resident fishermen in small, coastal communities near 
the fishing grounds to participate in the BSAI Pacific cod fishery.
    The increase in the allocation to the fixed gear CV < 60 ft (18.3 m) 
LOA sector from 0.7 to 2.0 percent of the non-CDQ Pacific cod TAC is 
fair and equitable. This sector has been successfully harvesting part 
of the allocation to the general hook-and line CV and pot CV 
allocations, all of its allocation since 2002, and reallocations from 
the jig sector since 2004. Its share of the harvest in 2004 and 2005 
averaged 1.7 percent. The small CV sectors have been favored in 
previous allocation measures for BSAI Pacific cod to encourage growth 
in this entry level sector. Such actions have been successful as 
illustrated by the steadily increasing harvests by this small boat 
sector. The allocation of 2.0 percent to the fixed gear CV < 60 ft (18.3 
m) LOA sector is necessary to provide sufficient Pacific cod for this 
sector to harvest under its own direct allocation, separate from the 
hook-and-line and pot CV [gteqt]60 ft (18.3 m) LOA sector allocations 
these small boats currently may fish under, and to allow continued 
growth in this small boat sector.
    Although the jig sector allocation of 1.4 percent of the Pacific 
cod TAC is 14 times higher than its historic harvest share, it is a 
reduction from it current allocation of 2.0 percent. The intent of this 
allocation is to provide for an entry level fishery. The reduced 
allocation to the jig sector still allows for growth in this sector and 
is closer to its historic harvest share than its current allocation. 
Additionally, this allocation serves as a ``bank'' for anticipated 
growth in the harvest of Pacific cod in all catcher vessel sectors 
given that unused portions of the jig gear allocation are annually 
reallocated first to the fixed gear < 60 ft (18.3 m) LOA sector (another 
small boat, entry-level sector), and then to other CV fleets that 
deliver to fishing communities. Also, under Amendment 85, reallocations 
from the jig sector will be available to the fixed gear < 60 ft (18.3 m) 
LOA sector earlier in the year. Being able to harvest the fish earlier 
in the year when the weather is preferable for these small boats 
(safety is a consideration under National Standard 10), should enable 
this sector to harvest more of the reallocated fish than it does 
currently. Therefore, in light of the likelihood of reallocations of 
any unused allocations to the < 60 ft (18.3 m) LOA fixed gear sector, 
and to other CV fleets that deliver shoreside to fishing communities, 
the allocation of 1.4 percent of the Pacific cod TAC to the jig sector 
is fair and equitable and meets the purpose and need of the action to 
consider socio-economic and community factors.
    For the small boat sectors to receive allocations above their 
average historic harvest, some sectors must receive less than their 
average historic harvest. The four sectors that will receive lower 
allocations than their average historic harvests are the pot CV 
[gteqt]60 ft (18.3 m) LOA, hook-and-line CP, pot CP, and trawl CV 
sectors. Their allocations represent a reasonable balancing of 
Magnuson-Stevens Act National Standard requirements while also meeting 
the purpose and need of the action. The pot CV [gteqt]60 ft (18.3 m) 
LOA sector and the hook-and-line CP sector will receive allocations 
that are closer to their average historic harvests than are their 
current allocations and are only slightly less than their average 
historic harvests. Because the small boat sectors will receive 
allocations above their historic harvest it is expected that the pot CV 
[gteqt]60 ft (18.3 m) LOA sector and the hook-and-line CP sector also 
may receive reallocations toward the end of the fishing year, which 
will make their share of the TAC closer to their historic share of the 
harvest. Additionally, the pot CV [gteqt]60 ft (18.3 m) LOA and trawl 
CV sectors may receive reallocations of Pacific cod from other CVs or 
from CPs of the same gear type. Also, the pot sectors are primarily 
dependent on crab fisheries rather than on the Pacific cod fishery. The 
pot CP and trawl CV sectors are the only sectors, other than the fixed 
gear < 60 ft (18.3 m) LOA sector, that will receive allocations that are 
less reflective of their average historic harvests between 1995 and 
2003. Recent trends demonstrate that the pot CP and the trawl CV 
sectors' harvest shares have decreased in recent years, such that the 
allocations under Amendment 85 better reflect these sectors' average 
harvest shares between 2000 and 2003 than do the current allocations. 
The AFA trawl CP sector was the only other sector that decreased its 
average harvest share between 2000 and 2003, but was not selected to 
fund the increases in other sector allocations for the reasons stated 
above. The allocation to the pot CP sector is fair and equitable 
because of its more recent decreased harvest share and its greater 
dependence on the crab fisheries. Although the trawl CV sector 
allocation is reduced, a combined allocation of Pacific cod to the AFA 
and non-AFA trawl CVs will take advantage of the existing AFA inshore 
cooperative structure for discussion and agreement concerning access to 
fishing grounds and harvesting activities in a manner that optimizes 
the allocation to this sector for all CVs. Additionally, public 
testimony at the April 2006 Council meeting requested that the two 
trawl CV sectors remain combined. A combined allocation also is larger 
than separate allocations to either the non-AFA or AFA CVs, thus 
providing some protection in the event that trawl vessels that have not 
historically participated in the fishery choose to do so.
    Comment 14: The AFA trawl sectors would receive the largest 
aggregate increased share of the Pacific cod fishery under the Council 
proposal - 1.2 percent over the combined AFA trawl CP and trawl CV 
history from 1999 through 2005.
    Response: The data presented in the analysis include historic 
harvest from 1995 through 2003 as the primary basis for determining 
historic use of Pacific cod by sector, although data from 2004 to 2005 
are presented as well. The Council did not make its proposal based on 
catch history from 1999 through 2005 based on reasons given in response 
to Comment 3. The trawl CV and AFA trawl CP sectors do not receive a 
combined allocation. The AFA trawl CP sector will receive a share of 
the non-CDQ Pacific cod TAC that is 0.1 percent higher than its 
historic share from 1995 through 2003. The AFA trawl CV sector will 
receive an allocation in combination with the non-AFA CV sector. That 
allocation will be 1.9 percent less than its historic share from 1995 
through 2003. Combining the AFA trawl CP sector with the trawl CV 
sector results in a combined decreased share of 1.8 percent of the non-
CDQ Pacific cod TAC.
    Comment 15: The proposed allocation of 13.4 percent to the non-AFA 
trawl CP sector is significantly less than this sector's actual 
dependence and use. The allocation scheme proposed by

[[Page 50798]]

Amendment 85 will put the H&G sector in an economically precarious 
position, slashing its recent usage of cod by up to 30 percent based on 
its harvest in 2004. The APA requires agency actions, such as Amendment 
85, to bear a rational relationship to the problems they are intended 
to address. Reducing the non-AFA trawl CP's allocation so substantially 
below its actual harvest levels over the past seven years does not 
serve the Council's ``primary objective'' of reducing the need for 
annual reallocations. The Notice of Proposed Rulemaking relies upon 
figures that clearly demonstrate this point. The Notice of Proposed 
Rulemaking specifically points out that the non-AFA trawl CP sector's 
retained harvest ``has not been less than 15.3 percent since 2000.'' 
There is no rational basis in the record to justify the reduction in 
cod TAC suffered by the H&G sector in this Council recommendation.
    Response: The allocations were based on long-term dependence and 
catch history over many years. The harvest history was not based on 
just one or two years of harvest by a particular sector (see responses 
to Comments 3 and 13). The Council had the option to select from six 
sets of specific years or to select percentages for the Pacific cod 
allocations that fall within the range of percentages analyzed. The 
Council chose the latter course of action. Thus, as the information was 
presented in the analysis, the focus was on Pacific cod harvest history 
from the years 1995 through 2003. NMFS recognizes that the selection of 
certain year sets will be more beneficial to some sectors than the 
selection of other year sets. In setting the percentages, the Council 
made a reasonable balance of the National Standards under the Magnuson-
Stevens Act, particularly National Standards 4 and 8 which deal with 
allocations and community considerations respectively. In examining the 
Council's action, NMFS determined that the allocations reasonably 
reflect the historic harvest of Pacific cod by each sector between 1995 
and 2003. NMFS determined that consideration of the earlier years (1995 
through 1998) is reasonable and that calculating harvest history 
through 2003, rather than 2004 or 2005, is reasonable for the reasons 
given in response to Comment 3.
    As stated in the proposed rule, the primary objective of the 
Council was to reduce the level and frequency of annual reallocations, 
and thus enhance stability so each sector may better plan its fishing 
year and operate more efficiently. Annual reallocations are expected to 
be reduced under Amendment 85, and are thus related to the revised 
allocations to each sector that more closely reflect historic use by 
most sectors than do current allocations, while considering 
socioeconomic and community factors. As noted in the response to 
Comment 13, nearly half of the annual reallocations between 2000 and 
2004 have come from the trawl CP sectors and those reallocations 
averaged 19.4 percent of the initial trawl CP sector allocation.
    Comment 16: National Standard 4 provides that ``If it becomes 
necessary to allocate or assign fishing privileges among various U.S. 
fishermen, such allocation shall be...fair and equitable to all such 
fishermen...'' Elaboration of this requirement under Sec.  
600.325(c)(3)(i)(A) requires that the particular allocation chosen be 
``rationally connected to the achievement of OY [optimum yield] or the 
furtherance of a legitimate FMP objective...'' and that ``the motive 
for making a particular allocation should be justified in terms of the 
objectives of the FMP; otherwise, the disadvantaged user groups or 
individuals would suffer without cause.'' In this case, the objective 
to conform allocations to current usage (to reduce late-year 
reallocations of unharvested fish) and dependency cannot be rationally 
served by reducing the non-AFA trawl CP sector allocation to one-
quarter to one-fifth below its actual recent harvest levels or by 
allocating more than recent harvest levels to other sectors. Under 
National Standard 4, an allocation may impose a hardship on one group 
if it is outweighed by the total benefits received by another group or 
groups. The Council would have had to make an estimate of the benefits 
and hardships imposed by the allocation and compare them to those of 
alternative allocation schemes, including the status quo. The Council 
did not do that.
    Response: NMFS has determined that the allocations are fair and 
equitable to all sectors. Between the two quotes from the Code of 
Federal Regulations is the sentence ``Inherent in an allocation is the 
advantaging of one group to the detriment of another.'' This action 
also is designed to increase the Pacific cod allocation to the small 
boat sectors which is a legitimate FMP objective. The management 
objectives in the FMP include promoting sustainable fisheries and 
communities. Because the small boat sectors deliver to fishing 
communities, increasing allocations to these sectors should promote 
these fishing communities. This action also will decrease the amount of 
Pacific cod that is reallocated to other sectors later in the season, 
facilitating these sectors' ability to achieve optimum yield by better 
planning their fishing year and operating more efficiently. The 
response to Comment 3 provides NMFS' rationale for why the years 1995 
through 2003 are a reasonable, fair, and equitable set of years for 
determining the average historic share of the retained Pacific cod 
harvest. Using that set of years, the non-AFA trawl CP sector received 
a fair and equitable allocation which is exactly its average historic 
harvest share from 1995 through 2003. Please see the response to 
Comment 13 for a discussion of all sectors' allocations.
    Comment 17: Every sector was allocated its target and incidental 
cod needs, except the H&G sector. This discrepancy is not specifically 
highlighted in the draft Secretarial Review. The H&G fleet was 
allocated an insufficient amount for accommodating both a directed 
fishery and incidental catch needs and, by inference, was given a 
choice: target or bycatch, but not both. This violates National 
Standard 4, that allocations be fair and equitable to all fishermen. 
When one sector must decide between its target fishery and its other 
groundfish fisheries, while others have been allocated in excess of or 
close to their recent harvests, it is neither fair nor equitable, 
particularly in light of the fact that it was never addressed in the 
EA/RIR/IRFA.
    In economic terms, NMFS' inseason manager estimates that under 
Amendment 85, the H&G sector would lose about 10,000 metric tons of cod 
in 2007 compared to expected harvest under the status quo. NMFS' in-
season manager also estimates that in order to account for the 
incidental catch needs of the fleet for its flatfish and other 
fisheries, the agency will only be able to allow for a directed fishery 
of 10 or 11 days, whereas currently, the directed cod fishery is seldom 
closed. Owners, employees, observer providers, support companies, and 
the ports the vessels call on may suffer economic hardship under 
Amendment 85. We respectfully request that the Secretary disapprove the 
allocations.
    Response: NMFS has approved the non-CDQ allocations of Pacific cod 
under Amendment 85. Every sector, except the small boat sector, was 
allocated an amount of Pacific cod that reflects its average historic 
harvest and dependence over many years that included target and 
incidental catch to the extent that incidental catch was retained. 
Information on the historic harvest share for the non-AFA trawl CP 
sector was provided in the EA/RIR/FRFA, just as it was for all the 
other sectors. The non-AFA trawl CP sector's allocation of 13.4 percent 
of the Pacific cod non-CDQ TAC is 100 percent of its average historic 
harvest between 1995

[[Page 50799]]

and 2003, an exact reflection of its historic use and reflective of 
this sector's dependence on the resource over many years. Its recent 
increase in directed fishing for Pacific cod does not reflect a long-
term dependence on the fishery. NMFS acknowledges that accommodating 
target and incidental catch may be more difficult for the non-AFA trawl 
CP sector when compared to its most recent few years' harvest.
    The economic impacts of Amendment 85 were analyzed in the RIR and 
IRFA. Because this action is principally designed to reapportion access 
to the Pacific cod resource among current user groups, it represents 
tradeoffs (i.e., some entities are negatively affected while others are 
positively affected). The estimates referred to by the commenter were 
provided by NMFS a few weeks after the April 2006 Council meeting as a 
worst case scenario using lower acceptable biological catch (ABC) and 
TAC levels than actually were established for 2007 and assuming that 
the non-AFA trawl CP sector would continue conducting its fisheries as 
it does currently. Revising the estimates for 2007 based on the actual 
TAC and with a CDQ allocation of 10.7 percent would yield an estimate 
of 19 to 20 days of directed fishing under current non-AFA trawl CP 
fishing practices. If incidental catch rates of Pacific cod in other 
groundfish fisheries are reduced below the current rates, the non-AFA 
trawl CP sector should be able to maintain a directed fishery for 
Pacific cod for an even longer period of time. As stated in the EA/RIR/
FRFA on pages 294 and 295: ``With a lower potential allocation compared 
to recent years, this sector will likely need to determine how much of 
its cod allocation will be used as incidental catch to other target 
fisheries versus to fund the directed cod fishery,'' and ``Absent a 
cooperative structure as approved [by the Council] in [proposed] 
Amendment 80, it is expected that compliance with the groundfish 
retention standards and management of a lower Pacific cod allocation to 
serve both directed and incidental catch needs, will be substantially 
more difficult.'' See response to Comment 16 regarding consistency of 
Amendment 85 and this final rule with National Standard 4.
    Comment 18: The loss of a directed cod fishery leaves the H&G fleet 
with no fishery from the end of the yellowfin sole fishery (which ended 
in mid-April of 2006) until July, when the ``B'' season starts. No 
other fleet will see its current operations disrupted by Amendment 85 
the way that the H&G sector will.
    Response: Under existing regulations, Pacific cod allocations are 
further apportioned by season for most gear sectors to protect prey 
availability for Steller sea lions. Currently, the trawl CPs, AFA and 
non-AFA combined, receive 50 percent of their allocation in the A 
season, 30 percent in the B season, and 20 percent in the C season. See 
the proposed rule for more details on seasonal allowances. Beginning in 
2004, the trawl CP sector Pacific cod fishery has closed in mid-March 
due to reaching it's a season allowance. The B season for trawl CPs 
opens on April 1 and closes on June 10. More than half the incidental 
catch of Pacific cod by trawl CPs occurs after March. Amendment 85 
changed the seasonal allowances for the trawl CP sectors so that 75 
percent of the allocation may be harvested in the A season, with the 
remaining 25 percent harvested in the B season. This was done to 
maintain to the extent possible the current percentage of non-CDQ 
Pacific cod TAC available for harvest in the early part of the year 
when fishing for Pacific cod is more advantageous. If incidental catch 
rates of Pacific cod in other fisheries are kept low, the non-AFA trawl 
CP sector should be able to maintain a directed fishery for Pacific 
cod.
    Comment 19: The AFA trawl CP sector was funded with more than their 
recent (99-05) usage of 1.9 percent. That sector has its pollock 
fishery cod bycatch needs met at the all time high 1.5 million mt 
pollock TAC level, even as the pollock biomass and TAC are on a 
downward trend. With a 2.3-percent allocation, and lower pollock TAC, 
more cod can be used to enhance their directed fishery, which is 
essentially an IFQ [individual fishing quota] since only one vessel is 
used in the fleet to directed fish on cod. That vessel is also an AFA 
eligible CP, and while on the record it was stated that it has nowhere 
to go other than cod, the vessel has access to the yellowfin sole 
sideboard and the directed pollock fishery of the AFA CPs. It is the 
vessel owner's decision not to fish pollock or yellowfin sole with that 
vessel.
    Response: The AFA trawl CP sector will receive an allocation that 
is 0.1 percent above its average historic share of 2.2 percent of the 
Pacific cod harvest. NMFS provided the agency's explanation for 
approving the AFA trawl CP Pacific cod allocation in the response to 
Comment 13. NMFS agrees that it is each vessel owner's decision whether 
or not to harvest fish in the fisheries open to that particular vessel. 
However, it is a goal of this amendment to allocate Pacific cod to 
specific sectors based on average historic harvest, not to determine 
what fisheries are open to specific vessels or to establish other 
vessel-specific provisions for access to Pacific cod or other 
groundfish. Also, the AFA trawl CP sector allocation is less than its 
current sideboard limit for harvesting Pacific cod (see response to 
Comment 13).
    Comment 20: The reduced ability to target Pacific cod during the A 
season for the CP trawl sector has resulted in more rollovers to fixed 
gear; the cod that would have been caught in March when the fish are 
most aggregated, has not been caught. The fishery in the last two years 
has closed in early-mid March due to the 50 percent season limit and 
reduced cod TACs. This has benefitted the fixed gear sector which gets 
the rollover in the C season, at the end of the year. The Steller sea 
lion management measures drastically altered cod fishing patterns and 
harvests. The patterns were altered because of the seasonal 
apportionments, not because of changed priorities or reduced dependency 
on the part of the harvesters.
    Response: Almost all gear types, excluding < 60 ft (18.3 m) LOA 
fixed gear, are restricted in their amount of Pacific cod catch in the 
first half of the year because of SSL protection measures, not just the 
trawl CP sector. A goal of Amendment 85 is to reduce the amount of 
reallocations due to unharvested Pacific cod left toward the end of the 
fishing year. The trawl CP sectors have not harvested their entire 
allocation in any year since that sector began receiving a separate 
Pacific cod allocation in 1997. The jig sector is the only other sector 
that has also had Pacific cod reallocated from it in every year it has 
received a Pacific cod allocation. Beginning in 2004, NMFS has closed 
the trawl CP sector Pacific cod fishery in mid-March due to reaching 
its ``A'' season allowance. The B season opens on April 1 and closes on 
June 10. In 2005, NMFS closed the trawl CP sector Pacific cod directed 
fishery on August 18 because it had reached its halibut PSC mortality 
limit. In 2006, NMFS closed the trawl CP sector Pacific cod directed 
fishery on June 8 (just before the end of the B season), opened it on 
July 19, and closed it on August 31 due to halibut PSC mortality 
considerations. So in the last two years, the trawl CP sector Pacific 
cod directed fishery has been closed during the C season due to 
reaching its halibut PSC mortality limit. Halibut PSC mortality limits 
and seasonal allowances to protect SSLs have affected most sectors to 
varying degrees. It is up to each sector to try to keep its Pacific cod 
incidental catch rates and PSC catch rates low if it wants to maintain 
a directed fishery for Pacific cod. Also note that the seasonal

[[Page 50800]]

allowance percentages have changed under Amendment 85 (see response to 
Comment 22).
    Comment 21: The State waters Pacific cod fishery has taken 3 
percent of the Pacific cod ABC for the past two years, to fund a 
fishery in Adak which is closed to trawl CPs over 100 ft. This reduces 
the BSAI Pacific cod TAC by 3 percent. While this is calculated by NMFS 
to be taken ``off the top,'' if one looks at the allocations to each 
sector, it can be argued that it's really the H&G sector that took the 
hit. The H&G sector's 2004-2005 harvest (Table 3-12 - retained, incl. 
meal) was 17.7 percent. The H&G allocation is 13.4 percent. The 
cumulative effect of the increased CDQ and State waters fishery, is a 
further reduction in TAC of 6.2 percent. The original ITAC was 92.5 
percent of TAC, now it will be 86.3 percent of TAC. This reduction is 
spread disproportionately among sectors.
    Response: NMFS disagrees. The Council is free to choose how much of 
the Federal Pacific cod TAC it allocates to small vessels regardless of 
the existence of a State of Alaska-managed Pacific cod fishery in State 
waters. The State waters Pacific cod fishery is not within the 
Council's or NMFS' jurisdiction and can be modified by the State at any 
time. The amount of Pacific cod set aside for the State waters fishery 
has not and will not come from the non-AFA trawl CP sector allocation 
alone. Additionally, all trawl CPs >100 ft (>30.5 m) do not have access 
to the State waters Pacific cod fishery, not just the non-AFA trawl 
CPs.
    The process followed by NMFS in setting the allocations for Pacific 
cod each year in the annual specifications process is to first deduct 
the amount of Pacific cod for the State waters fishery from the ABC. 
The remainder is the TAC for a particular year. NMFS then deducts the 
amount of Pacific cod allocated to the CDQ Program. Finally, the 
remaining non-CDQ TAC is divided among the sectors. The reductions are 
taken before allocations are made to the non-CDQ sectors and, thus, 
affect all sectors proportionately.
    Comment 22: The EA/RIR/IRFA analyzed the impact of reallocating cod 
from trawl to fixed gear and determined that the trawl CP sector would 
have no C season cod, unless it rolled from within the sector's B 
season. Even with no cod TAC reductions, the trawl CPs will be severely 
constrained with the 50 percent limit for the A season, and this will 
filter through to the end of the year. The other trawl and fixed gear 
fleets that were well funded are in no worse position than they were 
prior to the Amendment 85 action.
    Response: The Council directed that allocations for the A and B 
seasons for trawl gear and the A season for fixed gear sectors be 
calculated to maintain the current seasonal percentage of the non-CDQ 
TAC that is allocated to those sectors. This was done to allow directed 
fishing for Pacific cod earlier in the year when there is less PSC 
bycatch, Pacific cod harvest rates are highest, and to maintain SSL 
protection measures. Under this action, the A season allowance for the 
non-CDQ trawl CP sectors will increase from 50 percent to 75, with the 
remaining 25 percent seasonal allowance available in the B season. That 
is why there would be a C season harvest only if seasonal allowances 
roll over from the A or B seasons to the C season.
    Comment 23: The non-AFA trawl CP fleet makes important economic 
contributions to remote Alaskan communities that the Council's reduced 
allocation to that sector may well jeopardize. The non-AFA trawl CP 
fleet fishes year round, using support services and relying on vendors 
which would normally be closed in the late spring/summer months were it 
not for this fleet's activities. The State of Alaska assesses all fish 
landed in Alaska, regardless of gear or sector designation. Whether 
harvested by CVs or CPs, the same landing taxes would be generated, and 
given back to the communities in which the fish would be offloaded. Any 
suggestion that community impacts support imposing the burden of 
funding the increased small-boat allocations solely (or even primarily) 
upon the non-AFA CP fleet is not based in fact or supported by the 
record.
    Response: NMFS acknowledges that the non-AFA trawl CP fleet makes 
economic contributions to the communities visited by vessels in that 
sector. Based on the EA/RIR/FRFA, NMFS does not expect a significant 
impact on remote Alaskan communities due to the non-AFA trawl CP 
allocation under Amendment 85. Any potential negative effects on remote 
Alaskan communities are likely to be outweighed by the positive impacts 
of the increased allocations to the small boat sectors, which are based 
primarily out of Alaskan communities. See response to Comment 13 
regarding the ``funding'' of the allocations to the small boat sectors.
    Comment 24: A separate section of the Magnuson-Stevens Act, 16 
U.S.C. 1853(b)(6) requires the Council and the Secretary to consider a 
certain set of relevant factors as a condition to establishing a 
limited access system for a fishery.
    Response: NMFS agrees that section 303(b)(6) of the Magnuson-
Stevens Act (16 U.S.C. 1853(b)(6)) requires the Council and NMFS to 
take into account several factors when establishing a limited access 
system. However, Amendment 85 does not establish a limited access 
system for the Pacific cod fishery because it does not affect existing 
participation requirements for the BSAI Pacific cod fishery. Therefore, 
section 303(b)(6) is not applicable to Amendment 85.
    Comment 25: NMFS should approve Amendment 85 with a Pacific cod 
allocation for the AFA trawl CP sector significantly greater than the 
2.3 percent proposed by the Council. Appropriately calculated, the 
retained legal catch of the AFA trawl CP sector averaged approximately 
2.5 percent of the total retained legal catch of BSAI cod between 1999 
and 2003, the relevant years following passage of the AFA in 1998. The 
2.3-percent allocation recommended by the Council and contained in the 
proposed amendment represents the absolute minimum amount necessary to 
fund both the bycatch needs of the AFA trawl CP pollock fishery and the 
relatively small directed fishery that at least one of the AFA trawl CP 
vessels has been conducting in the BSAI for many years. Ultimately, the 
way the incidental catch allowance is established and managed will 
determine the extent to which these objectives can be accomplished.
    Response: The AFA trawl CP sector will receive an allocation that 
is slightly higher than its average historic harvest from 1995 to 2003, 
one of only two non-small boat sectors to do so. About 44 percent of 
the Pacific cod harvested by the AFA trawl CP sector during that time 
period was taken incidentally when these vessels were targeting BSAI 
pollock. See the response to Comment 3 for why these years of 
historical harvest are appropriate. The allocation to the AFA trawl CP 
sector should be sufficient for this sector to cooperatively manage its 
allocation and maintain a directed fishery in addition to meeting its 
incidental catch needs in other fisheries. The incidental catch 
allowance for the AFA trawl CPs will be established inseason with the 
intent of maintaining a directed Pacific cod fishery.
    Comment 26: We support the proposed rule's plan to manage each of 
the trawl sector incidental catch allowances on an inseason basis. The 
proposed amendment should be revised to direct NMFS to manage any 
incidental catch allowance established in connection with the AFA trawl 
CP sector's Pacific cod allocation to

[[Page 50801]]

facilitate, to the maximum extent practicable, the prosecution of an 
early season directed Pacific cod fishery without jeopardizing the need 
to retain sufficient Pacific cod for bycatch in the directed pollock 
fishery later in the year.
    Response: NMFS notes the support for establishing trawl sector 
incidental catch allowances on an inseason basis. NMFS' existing policy 
for establishing incidental catch allowances is to facilitate, to the 
extent practicable, directed fisheries while retaining amounts needed 
as incidental catch in other directed fisheries. NMFS does not need 
regulatory authority to continue this policy, so no regulatory changes 
are necessary.
    Comment 27: Tables 3 and 8 of the proposed rule are inaccurate and 
understate the legally retained BSAI Pacific cod catch history of the 
AFA trawl CP sector. Table 3 does not use the ``best available data'' 
to calculate the AFA trawl CP sector's catch history for the years 
after 1998. In Table 8, the range for the AFA trawl CP sector includes 
a lower end point of 0.9 percent. That number is misleading for several 
reasons: first, it is derived by excluding fish utilized in the 
production of meal; and second, it is generated by using a WPR approach 
to calculate retained catch. This is inaccurate and prejudicial in that 
it suggests a level of usage and dependency that is significantly lower 
than accurately calculated catch would indicate.
    Response: Regarding Table 3 in the proposed rule, the response to 
Comment 2 explains why WPR data were used instead of observer data to 
calculate catch history. The purpose of including Table 8 was to 
demonstrate the wide range of allocations that were considered by the 
Council. The allocation to the AFA trawl CP sector is slightly above 
its catch history as calculated from WPR data from 1995 through 2003. 
Also see responses to Comments 13 and 25.
    Comment 28: We prefer to purchase all of the Pacific cod for our 
restaurant chain from a particular AFA trawl CP because of the high 
quality of the product. If the amount of Pacific cod available for that 
vessel to harvest were to decline, we would likely be forced to 
purchase lower quality processed cod from foreign commodity markets.
    Response: Under Amendment 85 and this final rule, the AFA trawl CP 
sector will receive an allocation of Pacific cod that is slightly above 
its historic harvest. Because the AFA trawl CP sector operates as a 
cooperative and has the ability to control its harvest, NMFS 
anticipates that the amount of Pacific cod allocated to the AFA trawl 
CP sector will be sufficient to maintain the sector's directed fishery 
while meeting its incidental catch needs in other fisheries.

Comments on Dependency on the Pacific Cod Fishery

    Comment 29: The non-AFA trawl CP sector asserted that the Pacific 
cod allocation they received will be insufficient to prosecute their 
flatfish fisheries. However, that does not appear to be the case. From 
1999 to 2003, the non-AFA trawl CP sector took 54 percent of their 
Pacific cod in directed Pacific cod fishing and 46 percent incidentally 
while targeting other species (flatfish, etc.). In 2003, 63 percent of 
the non-AFA trawl CP sector Pacific cod was taken in directed Pacific 
cod fishing and 37 percent was taken incidentally. The allocation the 
non-AFA trawl CP sector received is 90 percent of its 1997 to 2003 
average catch history. For comparison, the pot CP sector received an 
allocation that is 88 percent of its 1997 to 2003 catch history. The 
trawl CV sector allocation was 97 percent of its 1997 to 2003 catch 
history. The hook-and-line CP sector received an allocation that is 97 
percent of its 1997 to 2003 catch history. However the hook-and-line CP 
sector's dependency on BSAI Pacific cod is four times that of the non-
AFA trawl CP sector and more than twice that of the pot CP sector and 
the trawl CV sector.
    Response: Please see the EA/RIR/FRFA for the best available data on 
the BSAI Pacific cod fishery. All the sectors are dependent on the BSAI 
Pacific cod resource, albeit to varying degrees. Based on the average 
annual estimated total first wholesale revenue from groundfish products 
between 1999 and 2003, the hook-and-line CP sector is more dependent 
than the other sectors on the BSAI Pacific cod resource.
    Comment 30: The proposed allocations do not correlate with actual 
dependency and use by sector. The non-AFA trawl CP sector is highly 
dependent on Pacific cod as a directed fishery and as an incidentally 
caught species in every target fishery the sector prosecutes. The H&G 
fleet will lose most of its directed cod fishery under the Amendment 85 
allocation because almost half of the cod harvested by the H&G fleet is 
incidental cod in other groundfish fisheries. This fishery now 
represents over a quarter of all non-AFA trawl CP sector revenues. This 
aggregate figure, as large as it is, masks the fact that Pacific cod 
accounts for well over half of the revenues for particular non-AFA 
trawl CP vessels, particularly the smaller vessels in the fleet. If the 
Amendment 85 allocation and CDQ increases took place in 2007, and 
assuming a harvest equal to that of 2005, the fleet would shut down in 
late May due to insufficient cod. The sector would lose 34 percent of 
its annual 1999 to 2004 average revenues for the fleet.
    Response: NMFS acknowledges that the non-AFA trawl CP sector 
Pacific cod allocation under Amendment 85 is less than the percentage 
harvested by the sector in very recent years and that this sector's 
harvest has increased in recent years. However, the allocation is not 
based on one or two recent years, but is reflective of long-term 
dependence as evidenced by harvest over a longer period of time. The 
Council decided that long-term dependence was appropriate and NMFS 
determined that the record supports this approach (see response to 
Comment 15). Based on recent fishing practices by the fleet, NMFS has 
determined that this sector will maintain a directed Pacific cod 
fishery and will be able to prosecute other fisheries (see response to 
Comment 17).
    Comment 31: The analysis does not address the issue of lost revenue 
from low allocations on either the H&G fleet's other groundfish 
fisheries or from loss of the target fishery itself. Stating that 21 
percent of the annual revenues of the fleet are from cod oversimplifies 
the picture. The information before the Council on Amendment 80 (June 
2006 C-1 Supplemental to Amendment 80) states that the H&G sector's 
revenues from cod are actually 25 percent (99-04 avg). However, we are 
more realistically 100 percent dependent on cod because it is critical 
to all our target fisheries. Not only will we lose some percentage 
revenue from loss of a directed cod fishery, but we can lose the value 
of the non-cod groundfish target fishery as well. The Council and the 
analysis for Amendment 85 also failed to consider that the non-AFA 
trawl CP sector is dependent on Pacific cod for incidental catch in its 
flatfish, mackerel, and rockfish fisheries. The first real analysis of 
the impact of the Council's decision upon the non-AFA trawl CP sector 
was made by NMFS only several weeks later, and it found that impact to 
be severe. Substantial bycatch of Pacific cod in these fisheries is 
inevitable. This bycatch amounts to almost half of the non-AFA trawl CP 
sector's harvest of Pacific cod. We are no less dependent on our cod 
revenue than a cod longliner which does not engage in any other 
groundfish fisheries. The reduction in the Pacific cod allocation to 
the non-AFA trawl CP sector will affect its entire BSAI fishing effort. 
Without cod, no one

[[Page 50802]]

in the H&G fleet can fish in any BSAI target.
    Response: NMFS believes that the non-AFA trawl CP sector has a 
sufficient Pacific cod allocation for a directed Pacific cod fishery. 
The size of the directed Pacific cod fishery will depend on the 
sector's need for Pacific cod as incidental catch in its other directed 
groundfish fisheries. The EA/RIR/IRFA examined this issue and concluded 
that the sector's directed fishery is likely to be affected by the 
allocation. The EA/RIR/FRFA acknowledges the need for the allocation to 
include incidental catch needs on page 279: ``The problem statement for 
this amendment emphasizes that the Pacific cod allocations should be 
adjusted in order to reduce uncertainty in, and provide stability to, 
the sectors. Allocating appropriate amounts of incidentally caught cod, 
so that each sector's directed fisheries can be harvested, is an 
important concern when creating stability.'' Also stated on page 293: 
``As mentioned above, the non-AFA trawl CP sector harvests a 
significant portion of its BSAI Pacific cod as incidental catch in a 
non-Pacific cod target fishery. Table 3-101 shows that the non-AFA 
trawl CP sector harvested about 54 percent of its total retained cod 
harvest in the target cod fishery on average during 1999 to 2003; the 
remaining 46 percent was harvested as incidental to all other target 
fisheries, primarily the flatfish fisheries (yellowfin sole, rock sole, 
flathead sole, Atka mackerel, and Pacific ocean perch). With a lower 
potential allocation compared to recent years, this sector will likely 
need to determine how much of its cod allocation will be used as 
incidental catch to other target fisheries versus to fund the directed 
cod fishery.'' Also, see response to Comment 17.
    What this sector is ``losing'' is the opportunity to harvest an 
amount of Pacific cod that is larger than its historic use and 
dependence. The trawl CP sector has not harvested its entire allocation 
of Pacific cod since allocations began in 1994. The trawl CP sector has 
been the largest contributor to the yearly reallocations that this 
amendment is designed to reduce, therefore, the allocation to the trawl 
CPs is justified. Also see response to Comment 30.
    The commenter may be assuming there is hard cap management under 
Amendment 85, but Amendment 85 does not include this provision (see 
response to Comment 77).
    Comment 32: Incidental catch of Pacific cod allows harvesters to 
maximize the value of the other target species because it is in large 
part the highest valued species in each of those non-AFA trawl CP 
target fisheries.
    Response: NMFS acknowledges that Pacific cod is a valuable species. 
The non-AFA trawl CP sector will have to manage its Pacific cod 
allocation to accommodate target and nontarget needs to optimize the 
value of its harvest of BSAI groundfish.
    Comment 33: Non-AFA vessels are excluded from any access to the 
pollock fishery and now the Council is proposing to take away from them 
a significant portion of the Pacific cod fishery that, over a 
demonstrated period of years, they have used and are dependent upon, 
while at the same time augmenting the fishing privileges of AFA trawl 
CP vessels that have neither been using nor depending upon the cod 
fishery at more than a minimal level during that same relevant period. 
That proposal does not comport with this Council's obligation to 
``protect other fisheries . . . and the participants in those fisheries 
. . . from adverse impacts caused by [the AFA] or fishery cooperatives 
in the directed pollock fishery.''
    One final noteworthy recognition by the Notice of Proposed 
Rulemaking is that the Council decided to ``maximize the opportunity 
for a directed Pacific cod fishery'' for the AFA trawl CP sector, 72 FR 
5662 (col. 1, top), but was content to underfund the non-AFA trawl CP 
sector to such an extent that it ``may be constrained in its ability to 
conduct a directed fishery for Pacific cod in order to have sufficient 
Pacific cod available for incidental catch in its other fisheries.'' 
Id. (col. 1, bottom). This turns upside down the Council's obligations 
under the AFA.
    Response: Sideboards are intended to prevent a sector from using 
advantages gained from a rationalized fishery in a fishery that is not 
rationalized. The current AFA CP Pacific cod sideboard prevents AFA 
trawl CPs from harvesting a larger share of Pacific cod than the sector 
harvested before the AFA. Amendment 85 will separate the trawl CPs that 
currently share one allocation into two sectors, AFA and non-AFA. The 
AFA trawl CP sector will receive 0.1 percent of non-CDQ TAC above its 
average harvest history under Amendment 85 and the non-AFA trawl CP 
sector will receive exactly its average historic harvest. The AFA trawl 
CP fleet will be restricted to a separate allocation slightly greater 
than its historic catch from 1995 through 2003, but 62.3 percent below 
its current sideboard limit for catch of Pacific cod. Although the non-
AFA vessels are excluded from the pollock fishery in the BSAI, AFA 
sideboard provisions will continue to restrict those vessels from 
participating in other BSAI fisheries, and AFA trawl CPs will continue 
to be prohibited from fishing in the Gulf of Alaska. Therefore, NMFS 
has determined that the AFA trawl CP allocation of Pacific cod under 
Amendment 85 is consistent with the AFA. Also, separating the two 
sectors will protect the historic catch of the non-AFA trawl CPs better 
than leaving these two sectors combined with a lower shared allocation 
that reflects their combined history, but with the same AFA sideboard. 
NMFS believes the allocations of Pacific cod to the AFA and non-AFA 
trawl CP sectors are sufficient for each sector's directed Pacific cod 
fishery and for their incidental catch needs and that the allocation 
for the non-AFA trawl CP sector will be better protected under 
Amendment 85 than leaving the sectors combined.
    Comment 34: To whatever extent the sector's total catch history is 
not reflected in the initial allocation made under Amendment 85, there 
will be insufficient fish in the AFA trawl CP sector's allocation to 
meet the bycatch needs of the pollock fishery without depleting, at 
least to some extent, the allocation that would otherwise be available 
to our directed cod vessel. As a consequence, the directed cod fishery 
that vessel has traditionally conducted during the early part of the 
fishing year will likely be curtailed, if not eliminated.
    Response: Given that the allocation to the AFA trawl CP sector 
under Amendment 85 is slightly higher than its average historic 
harvest, that allocation should be sufficient for this sector to 
cooperatively manage its allocation and maintain a directed fishery in 
addition to meeting its needs for incidental catch in its pollock and 
yellowfin sole fisheries.
    Comment 35: The Council increased the allocation to the AFA trawl 
CP sector so that Pacific cod would not be a limiting factor in 
prosecuting the BSAI pollock fishery. From 1999 to 2003, the AFA trawl 
CP sector took 84 percent of its Pacific cod in directed Pacific cod 
fishing and only 15 percent in the pollock fishery. The proposed rule 
states that 44 percent of the Pacific cod taken by this sector occurs 
incidentally in the pollock fishery. This is in contrast to the 
analysis (15 percent), therefore the proposed rule must be including 
fishmeal and other factors. Either way, it does not appear that the 
allocation this sector received under Amendment 85 will be constraining 
in the pollock fishery.

[[Page 50803]]

    Response: As stated in the proposed rule, the allocation to the AFA 
trawl CP sector was chosen to ``maximize the opportunity for a directed 
Pacific cod fishery and to minimize the potential for an increase in 
discards of Pacific cod if catch exceeds the MRA.'' The commenter 
apparently relied on the April 2006 draft analysis and used Table 3-105 
which excluded fishmeal. However, the information was revised before 
submission to the Secretary. The EA/RIR/FRFA includes fishmeal in the 
revised information in Table 3-101 and states on page 294 that, ``the 
AFA CP sector harvested about 56 percent of its total retained cod 
harvest in the target cod fishery on average during 1999-2003, the 
remaining 44 percent was harvested as incidental to other target 
fisheries, primarily pollock.'' Additionally, in the final Council 
motion from April 2006, the Council explicitly noted that in order to 
determine PSC, the percentage of Pacific cod harvested in the Pacific 
cod target fishery by the trawl sectors should be calculated on the 
basis of all cod catch from 1999 through 2003, including that 
designated for fishmeal production.
    Comment 36: Only the hook-and-line CP sector has a large and 
primary dependence on BSAI Pacific cod; it is the sector with the most 
dependence on the BSAI Pacific cod resource. Over 80 percent of the 
wholesale revenues of the hook-and-line CP sector come from BSAI cod.
    Response: NMFS agrees that the hook-and-line CP sector is the 
sector that has the highest portion of its income from its Pacific cod 
fishery. However, other sectors also depend on Pacific cod for a 
significant portion of their income.
    Comment 37: The H&G sector's Pacific cod use and dependence must be 
considered and accommodated by Amendment 85, just as was that of the 
hook-and-line CP sector.
    Response: The non-AFA trawl CP sector will receive exactly its 1995 
to 2003 average historic harvest under Amendment 85. The hook-and-line 
CP sector will receive 48.7 percent of the non-CDQ Pacific cod TAC 
under Amendment 85, which is closer to its average historic harvest 
than its current allocation of 40.8 percent. The hook-and-line CP 
sector's new allocation is less in all cases than its share of the 
retained harvest under various year groupings: from 1995 through 2003, 
from 2000 through 2003, and from 2004 and 2005 (see Amendment 85 
proposed rule Tables 3 and 4). However, its history is much larger than 
its current allocation due to reallocations of unused Pacific cod from 
other sectors, primarily the trawl CP sector. Amendment 85 was designed 
to reduce the amount and frequency of these reallocations to increase 
stability for all sectors.
    Comment 38: Amendment 85 will provide increased stability to the 
sectors with the most dependence on Pacific cod by removing the 
uncertainty of the amount of the potential annual harvest for each 
sector (i.e., reduce annual rollovers). This stability will promote 
efficiency and planning for those same sectors. For example, the 
increased stability of the BSAI Pacific cod allocation may facilitate 
the formation of a hook-and-line CP cooperative that can result in 
increased utilization and efficiency.
    Response: NMFS agrees that Amendment 85 will increase stability in 
the BSAI Pacific cod fishery.
    Comment 39: The Council was consistent with past allocation actions 
by not including fishmeal when considering dependency on the resource.
    Response: Contrary to the commenter's conclusion, the record for 
Amendment 85 and this final rule clearly demonstrate that the Council 
not only considered fishmeal data, but included fishmeal in the 
calculation of catch history for the AFA trawl CP sector allocation. 
When vessels directly affected by a proposed allocation action process 
fishmeal, it has been considered. It depends on what sectors or vessels 
are affected by an action as to whether fishmeal has been included or 
excluded. Fishmeal was not particularly relevant other past allocation 
actions. In current and proposed actions, fishmeal was excluded in the 
preliminary analysis for Gulf rationalization, which has been tabled. 
There is now an option to exclude fishmeal in the Gulf of Alaska 
Pacific cod sector-split analysis. However, these actions exclude the 
AFA trawl CPs, which are the primary producers of fishmeal. Therefore 
it is consistent to include fishmeal in considering a sector's 
dependency on Pacific cod under Amendment 85.

Comments on Groundfish Retention Standard Under Amendment 79

    Comment 40: The allocation to the H&G fleet affects the Amendment 
79 groundfish retention standard (GRS) which the H&G fleet must meet, 
starting in 2008. Once Pacific cod is closed to directed fishing, and 
is taken as an incidental catch in other fisheries, it is subject to a 
maximum retainable amount of 20 percent of the total groundfish catch 
aboard a vessel. This will make compliance with the groundfish 
retention standards of Amendment 79 very difficult for most vessels. 
The Aleutian Island cod fishery is a very high retention fishery, and 
it essentially is no longer an option for us. According to NMFS 
inseason managers, the fleet will only have enough fish to fund an 
early directed cod fishery, which is essential as it occurs 
simultaneous to the rock sole fishery. The loss of our Aleutian Islands 
cod target is going to pose a retention hardship for two reasons: one, 
we lose our March cod target fishery in lieu of bycatch needs for the 
rest of the year, and two, the H&G fleet's cod will be on bycatch 
status for the majority of the year. So the reduced allocation has put 
the fleet in a position of mandatory discards of a mandatory retention 
species, until or unless the sector is able to form cooperatives under 
Amendment 80.
    Response: As explained in the response to Comment 17, based on the 
actual TAC for 2007, but with the larger CDQ allocation of 10.7 
percent, NMFS estimates there would be 19 to 20 days of directed 
fishing under the current practices of the non-AFA trawl CP sector. If 
the sector reduces its incidental catch needs for Pacific cod in its 
other directed fisheries, its Pacific cod directed fishery could last 
longer. Typically, the non-AFA trawl CP sector targets Atka mackerel, 
rock sole, yellowfin sole and Pacific cod in January and the Pacific 
cod fishery peaks in March. The non-AFA trawl CP sector usually catches 
80 percent of its Pacific cod allocation in the first two seasons, 
which is its seasonal allowance. To meet the GRS after their directed 
Pacific cod fishery is closed, the non-AFA trawl CPs will need to fish 
in a manner that maintains incidental catch rates at levels that 
minimize regulatory discards. Therefore, meeting the GRS under 
Amendment 85 may be more difficult for the non-AFA trawl CP sector.
    If directed fishing for Pacific cod has not been closed to the non-
AFA trawl CP sector, then this sector has had to keep their entire 
catch of Pacific cod, which improves their retention rate. But if the 
non-AFA trawl CP Pacific cod directed fishery will now be closed most 
of the year, the non-AFA trawl CP sector must retain up to the MRA. Any 
catch over the MRA must be discarded and those discards will count in 
the retention calculation under the GRS, potentially making it more 
difficult to comply with the GRS.
    However, compliance with the GRS should be easier for the vessels 
that join a cooperative under Amendment 80, which was approved by the 
Secretary on July 26, 2007. The non-AFA trawl CPs may form harvesting 
cooperatives by the

[[Page 50804]]

start of 2008 if Amendment 80 is implemented by January 1, 2008, which 
also is the effective date for this final rule to implement Amendment 
85. Additionally, the Council has adopted a regulatory amendment that 
would adjust the accounting period for MRA amounts for particular 
species including Pacific cod. If approved by the Secretary, this 
adjustment also would be effective by January 1, 2008, and would reduce 
regulatory discards and facilitate compliance with the GRS under 
Amendment 79 to the FMP.
    Comment 41: The revised Secretarial review EA/RIR/IRFA (October 
2006) merely references the Groundfish Retention Standard (GRS) in one 
sentence that acknowledges that Pacific cod, as a highly retained 
species, is important to the non-AFA trawl CP sector in meeting the 
GRS. Neither Section 2.3.9 (Cumulative Effects) nor Section 2.3.9.1 
(Past and Present Actions) mentions the Amendment 79 GRS in relation to 
the sector's cod allocation and what the loss of its directed fishery 
and lowered allocation will do to the sector's ability to meet the 
retention standard. There is no attempt to estimate the impact of a 
reduced allocation on the ability of the sector, or small vessels in 
particular, to meet the GRS scheduled for implementation in 2008. The 
analysis should have considered the impact of the non-AFA trawl CP 
sector's Amendment 85 allocation on the ability of this sector to 
function under status quo management (no harvesting cooperatives) when 
the GRS is imposed in 2008. The tipping point on meeting the GRS with 
regard to this action is the reduced cod allocation, not the open 
access race for fish.
    Response: The Secretarial review draft EA/RIR/IRFA does discuss the 
cumulative effects of Amendment 85 in conjunction with the GRS and 
Amendment 80 in Section 2.3.9 ``Cumulative Effects'' under section 
2.3.9.2 ``Recent and Reasonably Foreseeable Future Actions.'' Improved 
retention rates are the intended effect of the GRS action under 
Amendment 79. Implementation of Amendments 79, 80, and 85 are planned 
for 2008. The GRS would be phased in over a four-year period.
    The reduced allocation to the non-AFA trawl CP sector likely will 
reduce its directed fishery, but the vessels still will be retaining 
Pacific cod to comply with improved retention/improved utilization 
requirements up to the 20 percent MRA percentage established for 
Pacific cod after the directed fishery is closed. The catch of Pacific 
cod beyond the 20 percent MRA threshold must be discarded. However, a 
vessel's total catch of Pacific cod still would be included in the 
calculation used by NMFS to assess compliance with the annual GRS ratio 
of retained catch to total catch. Thus, NMFS expects the GRS program 
would provide an incentive for the sector to fish for its other 
targeted groundfish species in a manner that reduces the incidental 
catch of Pacific cod to the extent practicable. In 2008, the GRS will 
be at a relatively low level to reflect fleet-wide status quo. As the 
GRS ratio steps up over the next four years, NMFS anticipates that it 
will parallel other new proposed management measures that provide 
additional opportunity for retention of groundfish, including proposed 
adjustments to the MRA accounting period for some species and Amendment 
80.
    The EA/RIR/FRFA recognizes that compliance with the GRS by the non-
AFA trawl CP fleet with its new Pacific cod allocation under Amendment 
85 will be more difficult. However, the purpose of Amendment 85 was to 
allocate Pacific cod based on historical retained catch in addition to 
socioeconomic and community concerns, not to allocate Pacific cod in a 
manner that would facilitate compliance with the GRS. There are other 
ways the fleet can improve its retention rates of Pacific cod without 
the allocation it has had in the past. For example, by avoiding fishing 
in areas with high bycatch rates of Pacific cod.
    Regarding the estimation of economic impacts, the Secretarial 
review draft analysis stated ``The Groundfish PSEIS [Programmatic 
Supplemental Environmental Impact Statement] noted that the 
availability and consistency of data limits the ability to analyze the 
effects of past actions on the economic condition of selected sectors 
of the Alaska groundfish fishery. According to the Groundfish PSEIS, 
analyses are also limited by the difficulty of delineating the cause-
and-effect relationships between multiple factors and the resultant 
economic effects. Many factors substantially affect the economic status 
of the Alaska groundfish